The AUD/USD pair initially tried to rally on Wednesday, but found enough resistance near the 0.7625 handle to turn around and drop towards the 0.7580 level. We bounce from there again though, and then reached towards the 0.7650 handle. I believe that the Australian dollar will continue to attract buyers, and at this point I like pullbacks as potential value plays. The market then will go to the 0.7750 level above, which is massive resistance and of course an area that has been paid attention to on longer-term charts. Because of this, break above that level would be very bullish, and should send this market towards the 0.80 handle. That’s an area that has attracted a lot of attention over the longer term as the weekly and monthly charts have shown the 0.0 level to be massively important.
Risk appetite has something to say about where the Australian dollar goes, as it typically gains power when people were feeling better about commodities, and global growth in general. On top of that, the other side of the equation is the US dollar which of course is a safety currency, and tends to pick up volume and value when we find the markets to be a little bit scary. Ultimately, gold also influences the Australian dollar, and if it starts to rally that should help the Australian dollar as well. Look for explosive moved in the Aussie to be coincided with explosive moves in the precious metals markets. The market continues to be volatile, but I still believe that short-term dips offer value that you should be taken advantage of, and bits and pieces and building a larger position. If you can play binary options, that might be an even better way to go currently.
Written by FX Empire