The Australian dollar has fallen over the last couple of sessions, as we reached the previous uptrend line, which of course should have and in the end did provide resistance. Because of this, and the rising interest rates in the United States, I believe it’s only a matter time before this market breaks down again. Pay attention to the Gold markets, they will be influential as well, as the Australian dollar is a bit of a proxy for this currency.
I believe that the 0.75 level underneath is support, and if we can break down through that level, the market should continue to go much lower, and I believe that we will eventually target the 0.7350 level. A lot of the selling would have been due to talk about the Chinese trade deal potentially being in question, and of course dampening expectations from the United States when it comes to talks with the North Koreans. Ultimately though, I think that this is a simple function of interest rates in America driving this market lower over the longer-term, and I think that will continue to be the way going forward the summer, as we are starting to calm precariously close to an end to a bullish market in the US treasury markets. If that’s the case, we are turning the market around after a 30-year trend. This is something that of course will have a massive effects in currency markets overall.
AUD/USD Video 24.05.18
This article was originally posted on FX Empire
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