The AUD/USD pair fell during most of the Friday session, but got a bounce as we approached the 1.03 level. This area has a history of being minor support, and as the area was approached, we also heard from congressional members out of the United States that the fiscal talks had been going fairly well. This was the little bit of optimism that the markets needed to start going “risk on” again. As the Australian dollar is a risk related commodity currency, it makes no surprise to us that this pair rose.
The hammer suggests that we will probably go higher. However, there is quite a bit of resistance all the way to the 1.05 level, and as a result we are not interested in buying. This area that we currently are hovering just below is the center of a larger consolidation area, and as such we can certainly find cleaner trades out there.
Written by FX Empire