The AUD/USD pair rose during the session on Tuesday, but ran into the resistance area above at the 1.0475 level again. The real resistance is actually the 1.05 handle, and as such we think that there will be some difficulty getting higher. There are Australian employment numbers coming out, and as a result this pair could start moving again. However, it does look like the market has decided to consolidate with a slightly bullish bias.
More important than anything going on Australia will be the US congressional talks. If they can come to some type of consensus, this pair should skyrocket. A break above the 1.05 level has as buying and aiming for 1.06, 1.08, and then eventually one .10 as the market looks wound to go much higher. Alternately, if we managed to break down below the 1.03 level we would start selling aggressively.
Written by FX Empire