The AUD/USD pair formed a shooting star on Tuesday after initially trying to surge on optimism. The pair does look rather weak at this point in time, and judging by last week’s shooting stars at the 1.03 levels, it does look like we have hit a bit of the ceiling in the Australian dollar.
On a break of the Monday lows, this would actually invalidate the bullishness that we saw on Monday and have a selling this pair. We think parity would be hit relatively soon, and it is there that we would find a real fight. On a break below the parity level we think the 0.97 is calling. As for buying right now, we would consider it in till we get a daily close over looking for above the 1.0350 level. However, this pair does look rather vulnerable so we do prefer selling signals over buying ones.
Written by FX Empire