The Aussie has managed to post significant gains and it seems that the biggest market theme in the FX space in the beginning of 2018 is the broad based commodity currencies strength. The AUDUSD looks poised to make a significant break above key resistance level 0.7886. On the downside, the first level of support only comes at 0.7800. Only a break and a daily close below 0.7800 can open the door for more potential downside towards 0.7730 pivot level.
The stochastic indicator is already in extreme territory which suggests that a reset is needed before the next leg up to show up. There is no major risk events scheduled on the Australian economic calendar but we can mention as a proxy risk event the Chinese Trade Balance figures scheduled on Friday. We should expect the Aussie to be more technical driven due to the lack of scheduled news events on the economic calendar.
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AUDUSD Weekly Forex Forecast – 8th to 12th Jan 2018
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