AUD/USD choppy as we await jobs numbers

The Australian dollar has been very noisy during trading on Tuesday, as we continue to find resistance at the 0.77 handle. That area caused the market to pull back at least twice during the day, and it looks like it will continue to be very difficult to break above. If we can get above the 0.7715 level, the market should then be free to go to the 0.7750 level. I also recognize that there is the typical correlation between gold and the Australian dollar, so if you can rally I think that we will see the Aussie rally as well.

Otherwise, we could pull back to the 0.7650 level underneath, which is the overall consolidation that we have seen over the last few sessions. If we were to break down below the 0.7250 level, then I think that the market probably unwinds to the 0.76 level. Beyond that, we would be breaking down below the uptrend line on the daily chart to send this market down to the 0.75 handle which of course has a significant amount of importance. I think that the market should continue to be noisy regardless of what happens next, so I like the idea of trading in small positions and using range bound systems in the short term. I think that the market rallying towards the 0.7750 level could possibly send the market to the 0.78 level, but that would take a significant amount of bullish pressure. I suspect that we won’t get impulsive moves unless we get some type of bad news coming out of the US or China.