Australian dollar continues to chop around during Friday

The Australian dollar has fallen during most of the session on Friday but continues to find buyers near the 0.75 level. I think if we can break down to a fresh, new low, which is essentially the 0.7480 level, then the market should continue to go much lower, perhaps down to the 0.7250 level. The alternate scenario is that we can break above the 0.7550 level, and that could send this market a little bit higher, but ultimately it’s a market that will struggle a bit, as gold markets have been hit pretty hard due to higher interest rates in America, driving the value the greenback higher as well.

If we do break down to a fresh, new low, then the market goes down to the 0.7250 level where I see a lot of support on the longer-term charts. If we break down below there, then it makes sense will go looking towards the 0.70 level after that as it is a major level. If we did rally, there’s the previous uptrend line above that could cause a bit of issues in the past, so I think that will cause resistance if we try to get up there. If we do break above there, that would be rather impressive, but I don’t think it’s going to happen, although we should have some type of selling pressure between here and there. A certain amount of exhaustion should be expected every rally.