The AUD/USD pair shot straight up during the Thursday session as the head of the ECB suggested they were willing to do anything to keep the Euro afloat. This suggests that the central bank will further ease, and this of course would put a bid in for commodities. It is under this line of thinking that the Australian dollar gained. It should be noted however, that it struggled to get above the 1.04 level at the end of the session and this could end up being a relatively strong resistance area.
However, it must be said that the pair is in an uptrend over the last couple of weeks, so further gains wouldn’t be very surprising. On a break of a fresh new high, we would be willing to go long again in order to try and reach the 1.08 level. However, we do not get that signed we will be very cautious and probably stay away.
Written by FX Empire