AUD/USD Price forecast for the week of March 26, 2018, Technical Analysis

The Australian dollar rallied significantly during the week but turned around near the 0.78 level to form something akin to a shooting star sitting on top of the 0.77 handle. A breakdown below the bottom of the candle for the week would be very negative and could send this market down to the potential uptrend line at the 0.76 level, but if we break down below there then I think we go to the 0.75 handle.

AUD/USD Video 26.03.18

The attitude of the Australian dollar has been very choppy over the last several months, but we are now starting to test a major support level, and that could change things. I think that given enough time, we will probably find buyers, but the question is whether we can do it before we break down to that daily trendline. I think the given enough time, we will probably reach towards the 0.79 level, and you need to pay attention to the gold markets, because of course will lead the way for the Aussie dollar. I do like this pair in general, but the 0.80 level above is a longer-term magnet for price. So, I think that it’s likely that we will continue to see the markets try to get there, all things being equal.

If the trade war situation comes out, that directly benefits Australia, and sends this market higher. If on the other hand we get more trade war talk, that will put downward pressure on the Aussie, as it is so highly correlated to the Chinese economy.