- The Aussie dollar continues to look to the upside in general, as we are bullish, but also worried about the risk appetite around the world. At this point, the AUD/USD looks like it wants to go higher.
Australian Dollar Maintains Constructive Tone in Uncertain Conditions
The Aussie dollar initially did pull back a bit during the trading session here on Friday but found enough support at the 0.7150 level to turn things around and show signs of life.
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At this juncture, the market looks like it is going to continue to be more or less a buy on the dip type of situation, and that does make a certain amount of sense considering that the Reserve Bank of Australia is probably one of your more hawkish central banks out there, and it makes sense that you would see the Australian dollar outperform many other currencies, and the interest rates in the United States drifting a little bit lower during the trading session on Friday also has helped the market shoot to the upside.
Market Grinding Higher with Technical Support
That being said, I think you have to look at this as a market that is probably going to be a bit of a grind to the upside and recognize that it is a little bit more bullish than bearish and could go looking to the 0.7250 level. Underneath we have the 50-day EMA offering support right along with the 0.71 level.
In general, this is a market that I like buying, I have no interest in shorting whatsoever, and I think if you are a bit hesitant to get involved, you should just cut down your position size and focus on short-term charts. I do, however, have a proclivity to go long, not short. The Aussie remains resilient overall, even against the strong US dollar.
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