The Australian dollar has shown itself to be very resilient over the last several weeks, but here recently we have seen the market go back and forth around the 0.7150 region. At this point, the market is likely to continue to be sideways, as we try to digest all of those gains and come to grips with the idea of this market going much higher over the longer term. That being said, markets do not go straight up in the air forever, so I do think that we are likely to see a lot of sideways action in the meantime. Longer-term though, I think it is only a matter of time before the market goes much higher.
AUD/USD Video 14.08.20
Looking at the Australian dollar, the 0.70 level underneath is massive support that extends all the way to the 0.71 level above. All things being equal, this area should hold as support for the longer-term move, but at this point we do not really have a catalyst for the markets to go higher quite yet. Remember, the Australian dollar did not break down as gold fell apart for a loss of over $100 the other day, so that does show just how strong the Aussie could be as the correlation between the two markets is so high. Overall, I do like buying dips on this market, but you may need to be extraordinarily patient to wait to see profits coming from long position.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire