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.