Australian dollar falls again on Monday after initially trying to rally

The Australian dollar initially rallied during the trading session on Monday, perhaps in response to the idea that the conversation between the Americans and the North Koreans will continue after all. Regardless, when I look at the weekly chart, we have formed several hammers, which of course is a very bullish sign. I believe that the 0.75 level underneath is massive in its importance due to the psychological nature, and of course the fact that the hammers seem to form around that level.

Ultimately, I think that the market breaking to a fresh, new low could send this market down to the 0.7350 level underneath, which has been important in the past. After forming several hammers in a row, that suggests to me that a break down below these recent lows would be very negative. At this point, I think what we are more likely to see is an overall consolidation in this region, with an upward slant to say the least. This of course will be influenced by the Gold markets as well, which could of course have ramifications as per usual. The markets are possibly going to react in a geopolitical situation as well, driving the price of gold higher. That can help the Australian dollar, but at the end of the day I think that the most important thing to pay attention to is the longer-term charts and look at this as more of a range bound scalping type of situation.