Australian dollar falls to significant round number on Thursday

The Australian dollar has fallen a bit during the trading session on Thursday, reaching down to the 0.75 handle. This is an area that should continue to be a bit of a magnet for price, so therefore I think that short-term traders will be looking at this almost like a Bollinger Band indicator. The 0.75 level is the moving average of that indicator so to speak, meaning that if we get a bit too far from that level, the market will probably turn right back around to test that area.

The 0.7550 level looks to be resistive, just as the 0.7450 looks to be supported. I think that the market will continue to bounce around between these levels, with the market bouncing around the way it has, it’s a nice opportunity to trade short-term positions back and forth between these 50-point levels. If we do break down below the 0.7450 level, then the market will probably unwind down to the 0.7350 level. Otherwise, if we turn right back around and break above the 0.7550 level, the market probably continues to go towards the uptrend line that had previously been so important, which is closer to the 0.77 handle above. If we can break above that level, then the market could continue to go much higher. However, as we have seen so much volatility that I think it’s good to be a bit difficult for this market to break out to the upside, especially considering how strong the US dollar has been in general.