AUD/USD shows signs of support during the week

The Australian dollar has fallen during most of the week but turned around to form a bit of a hammer to show signs of life again, and the uptrend line has been intact since the end of 2015. I think that the market continues to rally, but it is going to be very choppy and noisy, but that shows that we are trying to break above the 0.80 level and continue to go much higher. A breakdown below the uptrend line would be a very negative sign, and perhaps in the uptrend if we can break down below the 0.75 level. However, I think the market continues to show signs of life, and if gold can rally that could be the final nail in the coffin for the next couple of months.

Pay attention to talks about trade wars, that will obviously have an effect on the risk appetite of traders around the world, and the Australian dollar is highly leveraged to the Chinese economy, as Australia provide so much of the raw materials that the Chinese use for construction and manufacturing. If trade wars are avoided, then the Australian dollar will flourish as a result of demand for the raw materials coming out of the country. That should also send my looking for higher yields, which of course the Australian dollar represents. The 0.81 level above will be a bit of resistance, but I suspect that we will break above there with good news.