The Australian dollar has been a bit soft during the trading session, but it looks like we are trying to find some type of support near the 0.7275 level. Ultimately, this is a market that I think should continue to attract a lot of attention as all things Sino-American are causing headlines these days.
The Australian dollar has continually pulled back towards the 0.7275 level, where it has been finding support during the session. Because of this, I think that the market will eventually go looking towards the 0.7350 level above, which of course is a significant resistance barrier from previous trading. I think that the market will continue to be extraordinarily noisy, but at the end of the day I think that the Australian dollar will benefit from any good news we have out of trade relations. Beyond that, gold has its usual influence, which lately has done quite well so we should see a bit of a turnaround because of this as well.
If we do break down below the 0.7275 level, then I think the market will probably go looking towards the 0.7250 level, then the market will probably go looking towards the 0.72 level after that. This market continues to be very noisy, but I expect that to be the case as we have so much in the way of risk appetite out there being thrown around by the occasional headline, and I don’t see this changing anytime soon. However, the recent action certainly has been a lot more encouraging for those who would take on risk appetite at this point. If we can break above the 0.7350 level, then the market will more than likely continue to go much higher, looking towards the 0.75 level.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.