Australian dollar quiet on Thursday

The Australian dollar has done very little during the day on Thursday, as we continue to hang around the 0.7550 level. The market also has a significant amount of resistance in the form of a large number at the 0.76 level, and of course the uptrend line that had previously been so supportive. I think it’s only a matter of time before the market finds reason enough to sell, perhaps in higher interest rates coming out of the United States. I think that if the market rolls over from here, it’s very likely that we go to the 0.75 level after that.

The alternate scenario of course is that we break above the uptrend line, and for myself, I would hesitate to buy this market until we get above the 0.77 level. Once we cleared that level, the market would more than likely takeoff to the upside, perhaps reaching towards the 0.80 level which has been important. Having said that, I believe it’s very unlikely that we get the break out to the upside as the US dollar has been so strong and should be for the next several months.

Ultimately, the Gold markets could be a major player when it comes to this market as well, and obviously if you break down in that market, that puts downward pressure on the Australian dollar as per usual. Having said that, it is possible for gold and the US dollar to go up simultaneously, so keep that in mind.

AUD/USD Video 25.05.18