The AUD/USD pair initially tried to rally during the course of the day on Thursday, but ran into quite a bit of resistance at the 0.79 level. Because of this, it appears of the market is ready to continue going lower, as the Australian dollar continues to suffer in general. The gold markets aren’t necessarily helping either, and as a result there is no real sign of the Australian dollar strengthening. In fact, the commodity markets in general are working against the value of commodity currencies overall, so this market will be any different in my opinion.
The candle ended up been rather negative, and with that I feel that the market will then head to the 0.77 level, and then possibly the 0.76 level below. Ultimately, the market should continue to offer selling opportunities on short-term charts. If we see resistive candles on short-term charts, there’s no reason to not start selling yet again.
US dollar
Keep in mind that the US dollar is the strongest currency in the Forex world right now, so of course the Australian dollars going to continue to struggle against it. With that, I believe that we are not only going to test the 0.76 level again, but we are going to head down to the 0.75 handle as well. However, keep in mind that this market will probably be somewhat choppy so I’m looking at a short-term chart in order to place trades. I think that it’s only a matter of time before we break down but I also recognize that the massive amount of volatility should continue as there are a lot of concerns overall.
Asian growth is a bit slow also, and that of course works against the value of the Australian dollar also. Because of this, the market should continue to punish the Australian dollar as it is one of the largest supplier of raw materials to that part of the world.
