The AUDUSD pair initially fell on Friday but found enough support at the 50% Fibonacci retracement level to bounce a bit.

If we can break above the 0.95 handle, the market should continue to go higher. Ultimately, if we break down below the bottom of the range from the Thursday session, the market will then reach towards the 61.8% Fibonacci retracement level below.

The Australian dollar is highly influenced by the gold markets, so a bounce in that market could cause the bounce above the 0.75 handle. However, if we break down below the $1240 level in the gold market, the Aussie dollar will collapse.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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