The AUD/USD pair rallied a bit during the day, but then pulled back on Monday, testing the 0.7560 level. I believe that the market will then bounced towards the 0.76 handle, and possibly beyond. Obviously, there is a significant correlation to gold, so if it starts to rally as well, that could help the Aussie. I believe given enough time the markets will probably break towards the 0.7630 level above. I don’t have any interest in shorting this market, I believe that there is plenty of reason to think that we will continue to rise. The 24-hour exponential moving average has offered dynamic support over the last couple of sessions, and then before that had offered dynamic resistance. It appears that the market is correlating quite nicely with this moving average.
I believe in buying dips when it comes to this market, as there is a significant amount of buying pressure underneath that should continue to keep this market going higher. I believe that the overall picture is bullish for the Australian dollar, so therefore I am looking to buy the dips as it gives us an opportunity to pick up the Australian dollar “on the cheap.” I believe it’s only a matter of time before the buyers take advantage of any value that appears, so it makes sense that I would follow that. I don’t think that selling is possible quite yet, so I am either long war on the sidelines when it comes to the AUD/USD pair.
Written by FX Empire