AUD/USD forecast for the week of July 10, 2017, Technical Analysis

The Australian dollar has had a rough week as we fell towards the 0.7550 level underneath. We did bounce a bit, and then to show some signs of resiliency, as the longer-term chart seems to be forming a reasonably well-defined ascending triangle. A break above the 0.7750 level should send this market much higher, perhaps reaching towards the 0.0 level after that. I believe pullbacks are buying opportunities, and I think that we will continue to see this market act very volatile until we can make that move. Alternately, if we were to break below the uptrend line, that would be a very negative sign.

Gold markets

Obviously, the gold markets have a massive influence on the Australian dollar, and with the RBA looking neutral, I think that perhaps gold markets will probably be the biggest driver. Right now, I don’t have much faith in the gold markets, so we could see more sideways and choppy action over the next several weeks, but I do keep these lines of my chart to remind me that a breakout to the upside is indeed a powerful thing just waiting to happen. This same thing can be said for breakdown, and I think that we will eventually see some type of longer-term trade signal. In the meantime, I think that this is a lot of choppiness and range bound trading just waiting to happen, but one can see that we have seen buyers step been more aggressively over the longer term, leading me to believe that eventually the buyers will return, but I don’t know what the catalyst is going to be yet.

AUD/USD Video 10.7.17