AUD/USD has choppy and sideways week

The Australian dollar has gone back and forth during the week, at one point breaking above the 0.77 level only to turn around and show signs of indecision. We have a major uptrend line underneath, which should keep this market somewhat afloat. If we can break above the top of the candle for the week, the market could go towards the 0.78 level. The uptrend line underneath is the bottom of an overall daily uptrend channel. I think that the uptrend line should continue to be an area where a lot of buyers come back in, but if we break down below there I think that the Australian dollar will probably unwind down to the 0.75 handle.

Remember that the Australian dollar is highly sensitive to risk appetite overall, as we have a lot of concerns when it comes to the potential trade war between the United States and China, which of course directly affects the Australian economy as the Australians supply China with a lot of their raw materials. Gold also has is influence as well, so keep that in mind. If gold markets rally a bit, it’s likely that the Australian dollar will also.

If we break above the 0.78 handle, the market is likely to continue to go higher, perhaps reaching towards the 0.80 level above. The uptrend line goes back to late 2015, so I think it is in fact a major amount of support just waiting to happen. If we did breakdown below there, it could signal a very bad news.