Australian dollar breaks down during Tuesday session

The Australian dollar has broken down significantly during the trading session on Tuesday. As we have broken below the 0.75 level, it looks likely that we will continue to go much lower. The 0.7350 level is significant support, and now that we have cleared the 0.75 level, I think the doors open to go much lower. We had recently broke below a major uptrend line, and that of course is a negative sign in general. I think at this point rallies are to be unlikely, but when they do occur they should end up being my selling opportunities. Ultimately, the previous uptrend line should be massive resistance, but at this point it’s likely that the 0.75 level will be resistance as well.

In fact, at this point I think it’s impossible to buying this pair until we break above the 0.77 level, something that seems very unlikely. I suspect that we will have to go to much lower levels to find value hunters, and with rising interest rates in America, it’s likely that we will continue to see bullish pressure in the US dollar as the 10-year treasury market has broken above 3%. I believe that the 0.70 level underneath is going to be massive support, and longer-term could be a target. However, it’s unlikely that we get there easily. Longer-term, I think that eventually we will find enough value to go long, but clearly, we are nowhere near their right now. Ultimately, selling is all you can do.