The AUD/USD pair had a bullish session on Tuesday as the “risk on” trade came back. Rumors of Federal Reserve easing continued to hit the markets, and as a result the “hopium” trade returned. The pair raced back towards the parity level, and this area should cause some kind of reaction. Also, the 1.02 level above should do so as well. Beyond that, the pair would be a bullish pair again. However, the parity and 1.02 levels should be very difficult to break out of. The downside is still very probable in this environment at the risks out there continue to work fear into the markets.
Written by FX Empire