On the downside, you have the 0.65 level as a bit of a magnet for price and the 0.6450 level as support. Anything below the 0.6450 level opens up quite a bit of selling. Keep in mind that the Australian dollar is highly influenced by global economic conditions, the interest rate situation in both Australia and the United States, and of course the idea of whether or not China is getting back to work. After all, Chinese economic numbers have been a bit of a mess as of late, so that is something worth paying attention to. The question here isn’t so much whether or not the market can go higher, but whether or not it has enough momentum to break above the 0.6625 level.
As things stand right now, it certainly looks like we might try, but whether or not we actually have that momentum remains to be seen. I suspect we are just simply carving out a new range from which to trade between. I think at this point in time it should become a little bit more obvious, but in the short term expect quite a bit of volatility and noisy behavior.
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