Theres no doubt that the longer term trend in dollar appreciation remains strong. As weve been mentioning over the past weeks, the problem with the current market remains volatility. The large fluctuations, back and forth news about uncertainty, and the divergence between the major pairs, have made the current market difficult to trade. We still expect the dollar to continue its rally but remain very cautious as it has stalled numerous times after breaking through strong support/resistance levels. Big week as we expect NFP to move the market. Well be trading the RBA interest rate announcement today, looking for a surprise we would like to see the RBA leave rates at 4.25% for now and a sell-off in the Australian dollar. If they raise interest rates as expected, we will then look for guidance as 4.50% seems like a nice number for now. A cautious outlook may give traders reason to sell the AUD as it has stalled numerous times at the .93 and .94 level and is currently trending down.
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