The Australian dollar has rallied nicely during the week, reaching towards the 0.7850 level. Ultimately, I think that the market will continue to rally as we have so much interest in the 61.8% Fibonacci retracement level, as per usual. The market then that could go to the 0.80 level above, which has been a fulcrum for longer-term traders going back to the late 1980s. If we can break above the 0.81 handle, then the markets free to go much higher, and I think that will eventually happen. Pay attention to the gold market, it has a major influence on the Australian dollar as well, as Australia’s the largest exporter of gold.
The US Dollar Index could offer a bit of a clue as to where we go next, because not only does it show the value of the US dollar, but it typically is the opposite of gold. So, it’s a bit of a “double whammy.” Overall, I think we will continue to have a lot of choppiness and noise, but I believe that longer-term traders will continue to hang on to this market, and I believe that if we keep the position small, you can add as you go along, as the market proves itself to you and makes it comfortable for that type of trade. We’ve been in a very nice up trending channel for some time, so even if we do break down from here I think there could be support at the previous uptrend line.
AUD/USD Video 12.03.18
This article was originally posted on FX Empire
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