The Australian dollar has been rather noisy during Wednesday trading, pulling back to the 0.7730 level, but finding a support level near the 0.7350 level overall. By doing so, we had formed a “W pattern” on the hourly chart, and it looks as if we are ready to continue going higher. With that in mind, I believe that the market will eventually go looking towards the 0.78 level above, and then the 0.79 level after that. We had recently tested a major uptrend line and found it to be supportive, so I think that we will continue the same upward grind that we have seen since December 2016, and therefore I believe that we will not only reach the 0.81 level again, but we will eventually break above there.
Pay attention to the gold markets, they always have their influence on the Aussie dollar, but in general right now it looks as if the US dollar is being sold off in a bit of a “risk on” move. If trade tensions don’t get worse between the United States and China, that should help the Aussie as well, as Australia is such a major exporter of raw materials to China. All things being equal, this trade comes down to the trade tariffs, or lack of, between the United States and China more than anything else. If tensions fall, this pair rises and of course vice versa. I think at this point; the 0.77 level should be thought of as a bottom.
AUD/USD Video 12.04.18
This article was originally posted on FX Empire
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