Australian dollar has strong technical support

The Australian dollar has held up remarkably well in the Asian trading session today considering the developments overnight in the Asian region.

North Korea once again fired a long-range missile over Japan and into the ocean which sent many Japanese people ducking for cover in fear of their lives.

When North Korea launched their previous missiles, the Aussie dollar sunk as investors exited riskier assets in favour of safer ones like gold or the US dollar but as we can see on the Chart the Australian dollar has found strong support as it has in the past 2 days at around the US79.80c mark.

If there is a strong condemnation from the US over North Korea’s missile launch such as Donald Trump threatening military action or even stronger sanctions than already in place ,the Australian dollar could fall back further to the US79.00c level where this is an even stronger support level which will be hard to break.

The currency has now formed a strong double top with the last top higher than the previous one which is a strong bullish sign.

As already mentioned, unless something drastic over North Korea happens from the US, the next stop for the Australian dollar is the previous top of US80.68c

Chart

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