Australian dollar has a bumpy ride during Tuesday

The Australian dollar initially tried to rally during trading on Tuesday but found the 0.78 level to be a bit too much. By pulling back the way we have, it looks likely that we are going to find buyers underneath, perhaps near the 0.7750 level, or maybe even the 0.77 level. I believe the gold will have its normal influence on this market, as we should see a certain amount of interest going forward. The longer-term charts are bullish, as we have seen a nice up trending channel since the end of 2015. Ultimately, I think that the market will probably go looking towards the 0.80 level above, which has been a nice fulcrum for price over the last several years.

I believe that the volatility will continue to be an issue, but I believe in the longer-term viability of the Aussie dollar, as it should be bullish over the longer term. I believe that we will eventually go much higher, but that’s more of a longer-term investment more than anything else. It’s not until we break down below the 0.76 level that I would be concerned about the overall attitude of the markets, which would probably coincide with some type of “risk off” situation, perhaps an escalation of trade war concerns, or perhaps an escalation of the situation in Syria. I believe at this point, there are more than likely plenty of buying opportunities on dips, and I think that the markets will continue to look at this pair as such. I have no interest in shorting this market anytime soon.