The Australian dollar initially fell during the Thursday session but found a bit of support near the 0.79 level, a key support level on the longer-term charts. The market looks as if it is trying to build up enough momentum to finally break above the 0.80 level for good, but I think it’s going to take some time to do so this. Ultimately, I believe that we do breakout to the upside but we are going to need a bit of help from gold and perhaps some type of selloff in the US dollar overall. The jobs number coming out today could provide that volatility, and with this being the case I think that this will be one of the more interesting currency pairs to pay attention to. However, I believe that you need some type a daily confirmation to trade this market.
Daily confirmation important
I don’t have any interest in trying to buy the Australian dollar until the daily candle closes well above the 0.80 handle. Because of this, I will not be placing trade on Friday but I recognize that we are at a vital level. The 0.80 level has been important over the last several decades, and because of this I think that paying attention to the weekly close also will be important. If we do rally from hearing continued to go to the upside, the Australian dollar could go much higher over the longer term. This could be a “buy-and-hold” situation just waiting to happen if we get the right attitude and reaction from the markets. Currently, I believe that the market is trying to build up the momentum, but we have not proven herself so I am a bit hesitant to put money to work quite yet. Patient should be rewarded.
Written by FX Empire