The Australian dollar rallied significantly during the day on Wednesday, but found the 0.79 level above to be a bit resistant. Quite frankly, I think this will be and I selling opportunity unless we break above the 0.7925 handle. If we do break above there, then the Australian dollar is free to go much higher. Ultimately, I’m looking for signs of exhaustion to start selling though, because the Australian dollar has yet to pull back to the 0.7750 level, an area that should be retested for support. Ultimately, this is a market that will be volatile and of course influenced by the gold markets as a correlation is rather high.
Written by FX Empire