AUD/USD Price Forecast November 27, 2017, Technical Analysis

The Australian dollar did very little during the trading session on Friday, as we are testing the 0.7625 level. That being the case, the market looks likely to try to figure out where to go from here first thing in the morning, but when I look at the hourly chart it’s hard not to notice that we are approaching the oversold condition in the stochastic oscillator, and could be possibly trying to form a “cup and handle” pattern. If we break out above the 0.7650 level, that signifies that we could be moving to the 0.7750 level above, which is the beginning of significant resistance. That would make sense, because the market needs to build up momentum to break down significantly from here anyway, as we have been rather bearish as of late. So, this point I am buying a breakout above the 0.7650 level, at least for the short term. Alternately, if we were to break down below the 0.7550 level, then we would have a very negative looking market, and one cannot forget the correlation to gold.
I think in order to make this market one you can start buying, pay attention to gold and if it can break above the $1300 level, I think that we could see the Australian dollar show signs of significant bullish pressure. I believe that the market needs a little bit of help, as we have struggled to sustain movements in either direction as of late. However, if we were to see the goal market break out, it would confirm a bottoming pattern that I am paying attention to that market, and that of course means that people will be throwing money at the Australians to buy more of the precious metal as Australia’s the world’s largest exporter.