wrapper

The Australian dollar has found support yet again on a bounce from the 0.7325 region, as the 0.7350 handle looks to be the beginning of massive support. We have formed a hammer for the week, just like we did the week before and several weeks before that. Overall, I believe that the Australian dollar is trying to find its way higher, but obviously we have some churning to do in this general vicinity. However, for the longer-term trader, this provides a significant opportunity as a bounce from here could very well lead to the 0.76 handle, and then eventually the 0.80 level, realizing quite nice gains.

The alternate scenario of course is that we break down through these hammers and go looking towards the 0.72 handle. However, the resiliency of this market suggests to me that the path of least resistance is probably going to be higher, eventually. Keep in mind that the Australian dollar is highly sensitive to gold and of course the tariffs on China, as Australia provides China with so many of its raw materials.

It should be pointed out that a huge portion of the gains for the week were realized on Friday after President Trump tweeted that he wishes the Federal Reserve would reconsider raising interest rates, which through some doubt on the US dollar in general. However, he doesn’t have the power to make that happen, so I think this was the excuse that the market was looking for to rally anyway.

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.