Australian dollar continuing to find support

The Australian dollar went sideways during most of the Thursday session, as the 0.7550 level looks likely to be a bit supportive, but I think the 0.75 level is even more supportive. If we were to break down below that level, that could have this market unwind rather violently, and of course this would be an influence by the gold markets as well. I believe at this point it’s about the US dollar and not so much about the Australian dollar. Granted, we could get words coming out of either China the United States escalating a trade war, and of course Australia will suffer because of that as it is a great proxy for China itself. If the trade war heats up, this pair will sell off.

If interest rates in the United States continue to climb, this pair will probably sell off as well. Pay attention to gold, it has its usual influence also. At this point, I suspect that it’s not until we break above the 0.77 level that it is safe to start buying, and I suspect that rallies will probably cause exhaustion that we can start selling. If we were to break down below the 0.75 level, I would become very aggressive in my short selling of this pair as it would confirm the major breakdown.