The AUD/USD pair shot straight up after the mildly bullish European session, and then especially so after the extremely strong US jobs number. The surprise to the upside got everybody in the markets in the “risk on” mood, and as such commodity currencies all rose.
The pair has broken out above the 1.05 level, and although it has been there several times this previous week, it should be noted that Friday actually solid close above that level for the first time in recent trading. The pair does look like it’s of the top of its up trending channel, so pullback could be coming. If we can break the top of the shooting star from the Thursday session however, we feel that this would be a strong buy signal in this market.
We simply are not selling the Australian dollar at this point in time as it has shown such resilience going higher. We feel that the 1.03 level should be massively supportive and if we get a chance to buying this pair down there, we wouldn’t hesitate. As for selling we would need to see a daily close well below that level in order to get involved.
Written by FX Empire