AUD/USD Price forecast for the week of February 12, 2018, Technical Analysis
After the recent run-up in the Australian dollar’s value, the last couple of weeks have been very constructive. After all, markets can’t go straight up in the air forever, so it is a good sign to see them pull back occasionally. When I zoom out on the weekly chart it’s very easy to see that we are in an uptrend in channel, so I still have an upward bias. Obviously, gold has it say in this equation as well, and because of this we should watch the gold charts also.
By the time Friday rolled around, it looked as if the value hunters had come back into the market, so I think we will more than likely try to bounce from here. Even if we don’t, at the longer-term traders are better served looking for a bounce off the bottom of the uptrend channel that we have been enjoying over the last couple of years. The area just above of course is very important longer-term, as the 0.80 level has been an area of conflict going back decades. However, it appears that we are eventually going to be able to break above there, as the tenacity of the buyers doesn’t seem to be abating.
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It’s not until we break down below the 0.75 level that I think the uptrend is in trouble, and even though the last couple of weeks have been a bit disconcerting, at the end of the day we are still well within the massive channel that has defined this market since early 2016.