The AUD/USD pair fell during the bulk of the session on Thursday, but as you can see found plenty of support at the 0.9250 handle. That is an area that has been significant several times now, so quite frankly the fact that we find support their does not surprise me at all. The candle that formed for the day is a bit of a hammer, and that of course signifies that we could very easily go higher. A break above the top of the candle is that signal, and at that point time I believe that you see this market head back to the 0.95 handle.
On top of that, I believe that there is a significant amount of support all the way down to the 0.92 handle, with the understanding that the area will be significant support. The area giving way should lead the markets lower towards the 0.91 level. The market will continue to find support down near that level, and as a result this is still going to be a “buy only” market for the time being.
The Aussie continues to be bullish in my opinion.
The AUD should continue to be bullish in the near-term, and selling doesn’t even enter the picture until we break below the 0.89 level. At that point, I think that the 0.85 level will be attempted, and should attract more selling in the future. The gold markets will continue to be a force on the Aussie as well, and with that the two markets will be somewhat correlated.
The market is also a “risk appetite” related market, so if the general attitude of the markets in general are good, this pair should continue higher. The markets will continue to be choppy at times, as the headlines around the world are enough of an issue to get investors unnerved from time to time. When that happens, the Aussie suffers. The opposite is also true, so we will have to keep an eye on that from time to time. The 0.95 level is my target at the moment.
