Aussie dollar continues downward slide on Wednesday
As you can see on the chart, we had a longer-term uptrend line broken through by the Australian dollar on Tuesday, and then the market went sideways. On Wednesday, the sellers came back in as the interest rates in America continue to rally. I believe that the market should continue to go towards the 0.75 level underneath, which of course is a large, round, psychologically significant number. If we were to break down below that level, I think that the market could continue to go down to the 0.7250 level after that. I think that the market should continue to be one that you can sell on the rallies, unless of course you can break above the previous uptrend line with some type of significance. If we can break above the 0.77 level, that could have this market going into a longer-term move higher again, but right now it doesn’t look very likely.
Gold markets of course will have their usual influence, but with the way the US dollar is going, I think both gold and the Aussie are going to struggle. Beyond that, we are starting to see a bit of a “risk off” move in general, and that of course is also a negative for the Aussie dollar. Ultimately, I believe that we continue to see a lot of volatility and choppiness, and more importantly than anything else – negativity. I would need to see some type of daily signal to start thinking about buying.
AUD/USD Video 26.04.18
This article was originally posted on FX Empire
