The Australian dollar has gone sideways initially during the trading session on Tuesday, but as you can see we started to sell off as the Americans came on board. However, there is a small uptrend line that should keep this market to flow, as well as the 0.78 region which has been noisy. We have recently broken above to make a fresh, new high, and have pulled back to find support. I believe that the market should continue to find buyers, as the US dollar has perhaps gotten ahead of itself in selling off recently, and the recent bullish is more or less a “dead cat bounce” in the US Dollar Index.
I believe that of gold markets can rally, the Australian dollar should fair quite well. The 0.79 level above will be resistance, but I believe minor resistance at best. Ultimately, I am targeting the 0.80 level if we continue to see buying pressure. I think that breaking above there then has the market testing the major resistance extending to the 0.81 handle. Eventually if we can get above there, the market should continue to go much higher, perhaps offering a “buy-and-hold” scenario. I do believe this happens later this year, but in the meantime it’s very choppy and difficult to throw a lot of money in this market, I believe that you are probably best served building up a core position for a longer-term move.
AUD/USD Video 14.02.18
This article was originally posted on FX Empire
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