Australian dollar falls during hectic Friday session

The Australian dollar has broken down over the last couple of days rather drastically, slicing through the 0.77 handle during early Friday trading. The market looks very negative, and I think that the market should continue to look a bit disconcerting, as the Australian dollar is highly leveraged to Asia and of course the gold markets. The US dollar has been rising due to higher interest rates, and I think that could continue to be a bit of an issue. However, when I look at the longer-term charts there is a massive uptrend line just below, and that I think that we could have a significant bounce coming our way. However, we need to see some type of stability to start buying. I suspect that you are probably best to stay away from this market for the next 24 hours, as we try to prove the uptrend line reliable.

Look to the weekly chart, that should give you a bit of a “heads up” as to where we go next, unless we turn around and break above the 0.77 handle, because at that point I would suspect that the market would continue to go much higher, as it would have shown the uptrend line to hold. If we break down below the uptrend line, it is likely that we could go lower, perhaps reaching towards the 0.75 level. Pay attention to the US dollar in general, and of course the US Dollar Index, as it gives us an idea as to where this market might go.

AUD/USD Video 23.04.18