Australian dollar rallies during the trading session on Tuesday
The Australian dollar has rallied a bit during the trading session on Tuesday, as the Chinese look ready to try to defuse the situation between China and America. I believe that this point, this continues to be a “buy on the dips” market, sending the Australian dollar towards the 0.78 level, and then possibly beyond. I believe that the 0.77 level underneath is massive support. I like the idea of buying value when it appears, and most certainly can appear in this market when we pull back. However, one of the biggest problems out there is the potential headline risks that could come from Donald Trump or China itself. I think that the market continues to hinge on what goes on there.
I believe that the markets continue to be very jittery based on the situations, and I think that will continue to be the case in the short term. Ultimately, I think that we do get some type of resolution to the situation between the United States and China, and that of course will give us the opportunity for stability in this pair. When you look at the longer-term charts, there is a massive uptrend line underneath that continues the bottom part of the uptrend channel, which has defined the uptrend since the end of 2015. I think that the market will continue to try to make sense of this move, but I think pullbacks will more than likely be looked at as buying opportunities for those of you who are a longer-term base.