Australian dollar pulls back on Tuesday

The Australian dollar has formed several hammers on the weekly chart to show signs of support at the 0.75 level. The market has been very stable over the last month or so, using the 0.75 level. By rallying the way we had from there, it shows that we are starting to show signs of upward mobility, and I believe this will continue to be the case in the short term, as we have pulled back towards the 0.76 level. That’s an area where you would expect to find buyers based upon previous resistance, and I think that we will see people going long for that area.

Ultimately, if we break down below the 0.7575 level, the market probably drifts towards the 0.75 level again. That’s an area that has been massive support recently, and I don’t think that is going to change anytime soon. Longer-term, I believe that the 0.77 level will be targeted, perhaps even higher than that. That’s not to say that it will be very easy, but I do think that the buyers will continue to jump into this market and take advantage of value as we see short-term pullbacks. I don’t have any interest in shorting this market right now, because of the multiple hammers, which is something that almost never fails when you see that many in a row. That’s not to say that we are going to skyrocket anytime soon, but it certainly looks as if there are plenty of people willing to jump in and take advantage of short-term value.