The AUD/USD pair initially shot higher during the day on Thursday, but found enough resistance above at the 0.9450 area to turn things back around and form a shooting star. The shooting star of course is a very negative sign, and as a result I believe that the market should pullback from here. I don’t necessarily believe that we are going to break down, but breaking below the bottom of the range for the day would have this market looking for value below. With that being the case, I am looking for support below and supportive looking candles in order to get involved. We could however stay within the range that I have marked out on this chart, with the 0.92 level on the bottom, and the 0.9450 level on the top. Either way, buying right now is almost impossible, as I believe that the 0.9450 level should continue to offer resistance, and I also believe that the resistance area probably runs all the way to the 0.95 level as well.

Watch the gold markets.

The gold markets have been doing fairly well over the last 24 hours as well, which of course can move the Australian dollar in and of itself. With that being the case, I feel that the market will follow what happens in the gold markets, but there could be a lot of choppiness just above in both the Australian dollar and the gold markets themselves. Because of this, anticipate a lot of volatility but I do think ultimately that this market will go much higher. The real question is whether or not we can do it now, or later.

One potential hand is the fact that the last pullback reversed almost immediately and never got below the 0.93 handle. That’s normally a sign that the buyers are starting to take over, and quite frankly I’m kind of surprised that we formed a shooting star. Nonetheless, I don’t really want to sell, I would rather look for supportive candles below as I believe that the Australian dollar will continue to gain overall.

AUDUSD 62014

Related Articles
  1. Stock Analysis

    Starbucks: Profiting One Cup at a Time (SBUX)

    Starbucks is everywhere. But is it a worthwhile business? Ask the shareholders who've made it one of the world's most successful companies.
  2. Your Clients

    Advisors: How to Mend Doctors’ Retirement Planning

    While physicians are typically highly compensated, many fall short when it comes to retirement savings. Here are some steps advisors can take to help.
  3. Budgeting

    4 Best and Safest Password Manager Apps for 2016

    Find out which password managers are the best at keeping your passwords secure while managing critical data you use in your daily digital life.
  4. Stock Analysis

    How Medtronic Makes Money (MDT)

    Here's the story of an American medical device firm that covers almost every segment in medicine and recently moved to Ireland to pay less in taxes.
  5. Stock Analysis

    3 Volatile U.S. Industries to Exploit in 2016 (VRX, IBB)

    Read about volatile sectors in the stock market that may provide opportunities for investors in 2016, including energy, mining and biotechnology.
  6. Stock Analysis

    GE Vs. Honeywell International: Which is Better for My Portfolio in 2016? (GE, HON)

    Learn which stock is the best investment, General Electric or Honeywell. Discover which of the two stocks is preferred by asset managers.
  7. Stock Analysis

    Top 5 Stocks Listed on the Australian Securities Exchange for 2016 (RIO)

    Uncover five of the stocks listed on the Australian Stock Exchange (ASX) that offer investors the highest potential for above-average profits in 2016.
  8. Budgeting

    Beer of the Month Subscription Review: Is It Worth It?

    Learn how you can get access to some of the best craft beers produced in the world, delivered right to your front door every month.
  9. Fundamental Analysis

    Will Health Care Continue to Drive IPOs in 2016?

    Learn why health care IPOs may be slowing in 2016, and how Obamacare, poor previous filings and economic factors are affecting the health care sector.
  10. Investing News

    Latest Labor Numbers: Good News for the Market?

    Some economic numbers are indicating that the labor market is outperforming the stock market. Should investors be bullish?
  1. How liquid are BlackRock mutual funds? (BLK)

    BlackRock, Inc. (NYSE: BLK) mutual funds are very liquid, as are all mutual funds. An investor receives payment for a redemption ... Read Full Answer >>
  2. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  3. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  4. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  5. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  6. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
Trading Center