The AUD/USD pair initially tried to rally during the day on Tuesday, but found the 0.7625 level to be resistive again. However, when I look at the chart overall, looks as if we are trying to form some type of rounding bottom that could bring in more buying. A break above the 0.7625 level is a bullish sign, and should send the market looking for the 0.7675 handle. Once that happens, I think that it needs to coincide with gold markets trying to rally, and we could get a geopolitical issue or perhaps some type of stock market meltdown to make that happen. However, until that happens, I think it a bit difficult to get bullish of the Australian dollar for any real length of time.
This market continues to be choppy, and quite frankly I don’t know if that’s going to change anytime soon. Because of this, I have been on the sidelines for some time, but I am recognizing the fact that we are starting to form that rounding bottom, and that of course is a potentially bullish sign. As far as selling is concerned, I need to see gold breakdown below the $1200 level to feel comfortable at these low levels. I think this is a “wait-and-see” market currently, but I will of course keep you up-to-date here at FX Empire as to what I am doing when it comes to gold.
Written by FX Empire