AUD/USD Price Forecast January 22, 2018, Technical Analysis

The Australian dollar initially tried to rally during the trading session on Friday, but looks to be settling near the 0.80 level, an area that has been important going back to at least the 1980s. Because of this, it will be interesting to see what happens next.·FX Empire
Christopher Lewis
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The Australian dollar has rallied a bit during the trading session on Friday, reaching as high as the 0.8040 level, which salt sellers come back into the market and push towards the 0.0 level. That’s an area that has been important going back several decades, so I think that it’s likely we will continue to see a lot of noise in this area, and more importantly for the short-term trader: resistance.

However, I recognize that the US dollar is suffering overall, and I think it will eventually push this market higher. This is a level is can you take a lot of work to break through though, and probably a lot of help from the gold market. I think that the noise in this market will continue to be deafening, but I like buying dips more than anything else as the US dollar should continue to suffer.

Once we finally break above the 0.80 level, the market should be free to go much higher, perhaps more of a “buy-and-hold” situation. However, this is a market that also looks likely to be noisy, and I think it’s going to take a lot to get above there. Otherwise, if we break down below the 0.7950 level, then I start looking for buying opportunities at large, round figures such as the 0.79 handle, then the 0.78 level. If gold can finally break above the $1350 level, that should add a significant amount of momentum into this move as well.

AUD/USD Video 22.01.18

This article was originally posted on FX Empire

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