The Australian dollar was very volatile, as the Wednesday session has been massively supported at the 0.7950 level underneath. The 0.80 level above is significant resistance though, so it will be difficult to see a breakout above there. This is a level that has been important going back for decades, and therefore it is crucial as to the longer-term direction of the Australian dollar going forward. Because of this, I think that it is probably best to wait for a longer-term chart to show it’s time to start buying or selling. However, right now it looks as if the buyers are probably a bit more in control.
On the sidelines
In the short term, I am on the sidelines, as we will have to wait for some type of significant turn of events or at least some type of certainty to this market. Friday’s employment number could be the missing piece, but I recognize that we could be looking at quite a bit of choppiness between now and then.
Written by FX Empire