The Australian dollar has tried to rally during the trading session on Friday, but roll over as the jobs number in the United States added 225,000 for November. If we can break down below the 0.75 handle for a significant amount of time, I think that the Aussie will roll over and go looking towards the 0.7350 level after that. In general, the market should pay attention to gold as well, as it hasn’t done much lately in the way of positivity. The $1300 level above needs to be broken for the Australian dollar to start to rally significantly. However, if we close below the 0.75 handle on a daily chart, I think that the gold markets will fall as well, as the 2 markets tend to move in congruence.
Overall, I look at rallies as a selling opportunity, and at the first signs of exhaustion it’s an opportunity to go short. I believe that the 0.7560 level above should offer an area of selling pressure. I think that the market should of course be noisy, but breaking down below the 0.75 handle has me very aggressive. I have no interest in buying, least not until we break above the $1300 level in the gold market, something that doesn’t look very likely to happen. The volatility in the Aussie will continue, and I believe that the interest rate statement coming out of the United States this month will dictate where we go next, and if the Federal Reserve looks very hawkish, that could be the fuel to send this market to the downside.
Written by FX Empire