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  • NZX 50

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    +94.63 (+0.79%)
     
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  • NZD/JPY

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AUD/USD Price forecast for the week of March 19, 2018, Technical Analysis

The Australian dollar initially rallied during the week, but as you can see on the chart the 0.79 level has caused a bit too much in the way of resistance to continue going higher. In fact, we rolled over very significantly and went careening into the 0.7750 level below.

The Australian dollar initially tried to rally during the week but found the 0.79 level to be far too resistive to continue going higher. In fact, we fell apart at that point and reached down towards the 0.7750 level, the 61.8% Fibonacci retracement level of the most recent move. Beyond that, when you look at this chart, you can make an argument for an up-trending channel, and it looks as if we could continue to go lower from here to look for that uptrend line. If we break down below the 0.77 handle, I suspect that we will have that move happen.

AUD/USD Video 19.03.18

In general, I think that you should be watching the gold markets, which of course have sold off. Because of gold selling off, it puts bearish pressure on the Aussie dollar as well. Also, we have a bit of a “risk off” attitude in the markets as we are starting to be concerned about trade wars. Trade wars cause incredible damage throughout the currency markets, having people run for shelter in some currency such as the Japanese yen or the US dollar.

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A bounce from the uptrend line would be a very good sign, as it should continue to show that the market has an upward proclivity in general, even with the sudden pullbacks. I think we will find plenty of buyers underneath, but it may take some time. The 0.80 level above will be very interesting as it has been crucial going back decades.


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This article was originally posted on FX Empire

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