Aussie continues to grind just below the 0.77 handle on Friday

The Australian dollar has gone back and forth during the trading session on Friday, as a jobs number came out of America. The 0.77 level offered a bit of resistance, so I think that breaking above there could send this market towards the 0.7750 level. Just as important, there is a major uptrend line underneath that should keep this market somewhat afloat, as it goes back to late 2015. I think that the market should continue to be very noisy and I think that we are trying to form some type of bottom. I like this uptrend line, and if it holds I think this could send the market back towards the 0.81 level over the longer term. That’s not to say that is can be an easy move but pay attention to this area as it will give us an idea as to where we go for the next couple of months. A breakdown would be very negative, sending this market to at least the 0.75 handle.

The Australian dollar is highly sensitive to talks of trade wars as Australia provides China with much of its raw material, and that of course will have an effect on the currency. Beyond that, it is a risk sensitive market, so the better stock markets and gold markets do, the better the AUD/USD pair does over the longer term. I think this is one of the more interesting charts in the Forex world right now.