The Australian dollar has fallen a bit during the trading session on Tuesday, as traders came back from the holiday season. Gold markets course have a massive influence on the Australian dollar, so pay attention to them as well, as the 2 markets tend to move in the same direction over the longer term. I think that the general attitude of gold is going to be positive, as the US dollar has been struggling in general. I think this continues to put a little bit of bullish bias in the market, and I also believe that the market is probably going to go looking towards the 0.80 level above as an overall target.
Pullbacks of this point should be thought of as value, and I believe it’s not until we break down below the 0.7750 level that we need to worry about the short term bullish pressure. The jobs number coming out in a a few sessions of course will have an influence on this market, so it’s possible we may be a bit quiet between now and then. Ultimately, the market is going to be a bit choppy in general, but I don’t see any reason to think that we are going to break down significantly. If we can break above the 0.80 level, the market should then continue to go much higher, and more of a “buy-and-hold” scenario. At that point, I’m willing to add on dips to a larger core position.
Written by FX Empire