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Australian dollar chops around during noisy Thursday session

Christopher Lewis

The Australian dollar has gone back and forth during the trading session on Thursday, as we continue to see a lot of noise, and I believe that the market should see buyers on dips. This will be especially true if the risk appetite of traders continues to be relatively strong. The 0.77 level underneath continues to be a bit of a support level as well, so even if we break down I think that the buyers will return in this area.

Looking at the longer-term charts, there is a massive uptrend line that has recently served as support, which is the bottom of the of trending channel. Ultimately, the market should continue to go much higher, perhaps reaching towards the 0.81 level. The market continues to be very skittish, but I think that if the talks of a trade war between the United States and China can cool off, that should send the Australian dollar higher as Australia’s a major exporter of commodities to the Chinese.

I believe that the volatility should continue to be a major issue, so I would be slow about building a position, and only add gradually as it works out in your favor. I don’t have any interest in shorting the Australian dollar, because there has been so much support underneath. Looking at the overall attitude of the market, I believe that the Aussie will continue to offer value on these dips, and therefore I am looking to build a longer-term position, but I also recognize that this pair has been choppy over the last several months, so be cautious about jumping into quickly.

AUD/USD Video 13.04.18

This article was originally posted on FX Empire