The AUD/USD pair struggled during the session on Monday, as we continue to fall. The market looks as if it’s ready to continue going much lower as the 0.86 level has offered a little bit of support, but I believe that it is a brief respite I more than anything else. After all, the US dollar is the strongest currency in the Forex world right now, and I don’t see that changing anytime soon. With that being said, I am very bearish of the Australian dollar when it comes to trading it against the US dollar, and quite frankly feel that this trend is strong, and it should continue to go much lower.
The 0.85 level below of course is supportive also, but it’s only a matter of time before we break down below there as far as I can see. I think that we go to the 0.80 level, as the longer-term charts suggests that the area is much more interesting. With that, I feel that eventually we will target that area, and you have to keep in mind that the gold market in the Australian dollar market tends to follow each other.
Gold looking horrible
The gold markets look horrible at the moment, and as a result I feel that the Australian dollar will continue to struggle. Remember, there is a strong correlation between the two markets in the gold markets look like they’re going to struggle significantly near the $1200 level. I believe that we will continue to fall from here as far as gold is concerned, and the Australian dollar should continue to all as well.
Remember, the US dollar strengthening works against the value of gold, and by extension the Australian dollar. The US Dollar Index looks as if there’s significant buying pressure below, so I like buying again and again. With that, I feel that the Australian dollar will do the same thing that the other currencies out there in the commodity complex will do, which of course is lose strength to the greenback.
