Australian dollar bounces around again on Friday
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The Australian dollar continues the bounce around the 0.75 handle, an area that of course is important due to the psychological aspect of the number, and therefore a bit of a magnet for price. I think that if the market breaks down from here, and I do believe that that is probably the longer-term attitude of this market, we will probably go to the 0.7450 level, followed by the 0.74 level. Ultimately, if we can break above the 0.7550 level, the market would more than likely go higher, perhaps reaching towards the 0.76 level where I see a previous uptrend line. That previous uptrend line should be massively resistive, and I think that resistance extends to the 0.77 level. If we were to break above that level, then I think that the Australian dollar will pick up a lot of momentum to the upside. However, I don’t see that happening with the higher interest rates in America, and of course gold market struggling because of that.
Ultimately, this is a market that continues to be noisy, but if you have a short-term trading system that is based upon a range bound market, you could employ that here as we are likely to see a lot of back-and-forth. I think that the market will continue to be one that short-term traders will be attracted to, mainly because it is so well defined in the immediate time frames. Expect volatility, but at the end of the day I think we will eventually need to make some type of significant move.
AUD/USD Video 21.05.18
This article was originally posted on FX Empire