Australian dollar grind sideways during the trading session on Friday

The Aussie dollar continues to go sideways in general, as the Aussie has shown a little bit of stability, but I think this is a short-term phenomenon, and I expect to see sellers on rallies, as the trend line above is clearly broken down, and I think that the sellers have taken control. The bearish pressure I something I expect to see going forward, unless of course we could get a daily close above the 0.77 level, which would show a complete reversal of fortunes. The market breaking above there would be a very bullish sign, however unlikely.

Remember the gold markets course have an influence on this pair, but quite frankly at this point I think this is more about the US dollar than anything else. As a bit of a “knock on effect” we have seen gold fall, which is yet another reason to think that the Aussie will struggle. I like selling short-term rallies, as they show signs of exhaustion. That should be an opportunity to get short this market yet again. If we did breakdown below the 0.75 handle, the market would more than likely unwilling towards the 0.7250 level. However, if we did make that breakout I mentioned previously to the upside, that would probably send this market to the 0.80 level longer term.