The Australian dollar rallied during the day on Tuesday, slicing through the 0.79 handle. The market broke out to the upside, and it now looks as if we are ready to continue going higher. After all, we broke above the 0.7750 level, and that of course is a very bullish sign. The market looks likely to continue to go higher, and I believe that the 0.80 level will be the next target. I have no interest in shorting this market, and I believe that pullbacks will continue to be looked at as value. This will be especially true that the gold market rallies, which it has been doing, as the Australian dollar is a bit of a proxy for the gold markets. It looks as if we are going to continue to find value hunters in this market.
The 0.7750 floor
I believe that the 0.7750 level underneath is going to continue to be the floor in this market, so as long as we can stay above there I am a buyer. I recognize that we may need to pull back from time to time in order to build up enough momentum to finally smasher the 0.80 level, so it will take some time to get above there. I think that was pullbacks are to be bought, and that the market could be added to on the upside if we can continue to break out. A move above the 0.80 level should have buyers jumping into the market and adding to positions as well.
Written by FX Empire