The Australian dollar fell initially on Monday, testing the 0.7525 region for support. I believe that the real support is to be found closer to the 0.75 handle, so we can break down below there, the market could go much lower. If we rally from here, it’s likely that the sellers will return, somewhere close to the 0.7575 handle, and then most certainly above there at the previous uptrend line. I think that if we break down below the 0.75 handle, the market probably goes down to the 0.73 level, an area that has been important previously, but ultimately, I think that if we break down below this level, is very likely that we go down to the 0.70 level, which is much more important from a long-term standpoint.
If we can break above the uptrend line, then I think we test the 0.77 handle above. If we were to clear that level, the market could go much higher, perhaps reaching towards the 0.80 level, and at that point I think that we would see a massive uptrend trying to form. Ultimately, the gold market will also have a major influence on this market as well. Ultimately though, the higher interest rates in America continue to pummel gold, and then by extension pummeled the Aussie dollar. We are most certainly in a negative tailspin, and I think we should continue to go much lower.