The AUD/USD pair initially rose during the Thursday session, but it must be said that it sold off rather drastically by the end of the day. Looking at this chart, it’s easy to see that there is an uptrend line that the market is banging against currently. The 1.05 level seems to be massive resistance, and as such it seems like we have a real fight on our hands. The candle looks really weak for the Thursday session, and as such there is a possibility of a trend line break. If we get that trend line break, we think that the market will run to the 1.03 level. At that point time, support could be expected.
We think that the gold markets rising should eventually give a lift to the Australian dollar as well, and we find it on that the gold markets did so well during the Thursday session, while the Australian dollar got absolutely pummeled. Sooner or later the correlation will return, and the markets will realign themselves. We think that even if the trend line breaks down, that the 1.03 level should offer enough support that we can serve buying the Australian dollar then. In the meantime, this is going to be a messy pair to trade.
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