Australian dollar choppy during the beginning of the week

The Australian dollar has been very choppy during trading on Monday initially, but it does look like we are going to continue to try to go higher. The 0.78 level above will be the initial target, but if we can clear that area, I suspect that we will then go looking towards the 0.7850 level. I believe that the 0.7750 level will be short-term support, and most certainly the 0.77 level will be massive support. I think that you should pay attention to the gold markets, as they have a major influence on the Australian dollar. The market looks likely to be very noisy, but ultimately, it’s a market that will be positive longer-term from what I see, especially if we can get a bit of a “risk on” move. While gold can be a bit of a safety move, those tend to be fleeting, while the Australian dollar rallying based upon risk appetite being good is a little bit more sustainable.

I think that the 0.80 level above is the level of balance for the longer-term charts. I think that it will take a lot of work to get above there, but when you look at the longer-term charts for the Australian dollar, you can see that we are in an uptrend in general, and I think that should continue to be the overall attitude of this market. The Aussie will go looking towards higher levels, but it’s going to take a significant amount of work to do so.

Written by FX Empire