The Australian dollar went sideways during the Monday session, as we continue to see a lot of noise around the 0.80 handle. This is a level that goes back decades on the chart, and it causes quite a bit of noise. The fact that we failed to break above there is not a huge surprise, and I think that it’s going to take a significant move perhaps in the gold markets, or perhaps Copper markets to see this market break above the 0.80 level with any type of significance and wherewithal. Pullbacks should continue to be buying opportunities, unless of course we can break down below the 0.79 level, which for me which in this market much lower. If we were to break above the 0.80 level, and more importantly, the recent high, the market could go much higher, perhaps reach towards the 0.82 handle.
Patience will be needed
I believe that it will take quite a bit of patience to deal with that type of choppiness that we are seeing, but if we can break out above $1300 and the gold market, that would almost certainly force this pair to go much higher. If we break down below the 0.79 level, the market should continue to go much lower, at first reaching towards the 0.78 handle, and perhaps even the 0.7750 level after that. This is a market that will continue to be very choppy, but I still believe in the bullish pressure underneath sticking around. Gold might be the leader though, especially as this is essentially an anti-US dollar play.
Written by FX Empire