The AUD/USD pair rallied during the week, slicing through the 0.80 level. However, we did run into a bit of resistance there, as one would expect. After all, this is the level that the market has been watching for decades, and the fact that we fail there would not be surprising. The market breaking above the top of the weekly candle would be very bullish, as we would break above the 50% Fibonacci retracement level. The market should then go towards the 0.8350 level, which would be the next resistance barrier at the 61.8% Fibonacci retracement level. Alternately, if we break down below the bottom of the candle, we could go looking towards the 0.7750 level. That is an area that was massively resistive, and the fact that we broke above their shows that the market is trying to go much higher.
Buying dips
I believe that longer-term traders will continue to offer buying opportunities on pullbacks. Ultimately, the market should continue to go higher as gold markets have been very strong, and of course are highly influential when it comes to the Australian dollar. If the markets breaking above the 61.8% Fibonacci retracement level should send this market to retrace the entire fall, with a stop at the 0.88 level above. I have no interest in selling, at least not until we break down below the 0.77 handle underneath. Ultimately, this is a market that looks as if it is trying to change the overall downtrend, and we continue to see buying opportunities every time we dip.
AUD/USD Video 31.7.17
This article was originally posted on FX Empire