Australian dollar volatile again during Thursday

The Australian dollar went back and forth during the trading session on Thursday, reaching to the 0.78 level. The market has pulled back since then, but I think there is more than enough support underneath to continue to keep buyers involved. The market continues to be very noisy, but I do think there is a major amount of buying pressure underneath. Ultimately, I believe that the market should continue to find value on these dips, and I believe that if we can continue staying out of some type of trade war between the United States and China, it’s likely that the Australian dollar will benefit from this. This is because Australia is one of the major suppliers of commodities to China, so it makes sense that people use the Aussie dollar as a proxy for China.

Ultimately, I believe that the 0.77 level is a major floor in the market, and to be honest I would be quite surprised if we broke down below that level. If we do, then I think it’ll be much more difficult to put money to work. This is because there is a major up trending channel that has its bottom just below. I think that ultimately, it’s likely that the market will continue to go higher, perhaps reaching towards the 0.80 level, and then possibly the 0.81 level. Longer-term, I believe that the market should continue to see buying on dips, and a continuation of the uptrend channel that we have seen formed since late 2015. Currently, I have no interest in shorting this market in the face of so much bullish pressure.

AUD/USD Video 20.04.18