If we can break above the 0.7425 handle, then I think the market could go higher from here, perhaps reaching towards the 0.75 level. I think that short-term pullbacks should be buying opportunities, as the 0.7350 level has been so reliably supportive over the last several sessions and weeks. In fact, the weekly chart looks very supported at that area so I do like the idea of buying dips in this market, and of course Gold will have its usual influence. However, it looks as if this will be more of a slower move over the next several days, so simply look for a nice buying opportunity on dips show signs of support. If we did break down below the 0.7350 level, then the 0.73 level comes into play. That for me is the absolute bottom of support, and a break below that level would send this market much lower, probably down to the 0.70 level.
AUD/USD Daily Forecast - 6 August
The Australian dollar has rallied significantly during trading on Friday after the jobs number came out, slamming into the 0.74 handle. However, after the number came out the markets went dead quiet. At this point, it looks as if the 0.74 level will continue to offer a significant amount of resistance, just as the 0.7350 level underneath offers a significant amount of support. The strong bounce from that level shows just how much demand there is underneath, so I think that given enough time we will buyers coming into the market.
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