Underneath there we have quite a bit of support that extends all the way down to the 1.6 level, which obviously is a large, round psychologically significant figure. And therefore, I have to question whether or not this is going to be a bit of an area of a potential basing pattern, assuming we even get down there. If we turn around and break above the top of the Candlestick for the Trading session on Tuesday, then it opens up the possibility of a move to the 200 day EMA, possibly even the 50 day EMA. On a Move HigherAnything above that level then opens up the possibility of a much bigger move. I think at this point, we are trying to see a lot of sideways choppiness as the euro, of course, moves against the US dollar. But at the same time, the Australian dollar is highly sensitive to commodity markets and global markets overall, as well as Asian markets. 
Asian markets buy most of their hard commodities from Australia. So, there’s your connection at this point, I think we are looking for support. A bit of a bounce could be a buying opportunity, but right now I think you need to see a couple of days’ worth of sideways action first.More By This Author:EUR/GBP Forecast: Euro Plunges Against SterlingAUD/USD Forecast: Australian Dollar Continues To Face ResistancePairs In Focus – Sunday, Sept. 22
