The AUD/USD pair fell during the session as the 1.0475 level continues to be far too resistive for the buyers to break out of. We are currently stock between that level and the 1.04 handle, and as a result it looks fairly tight market. We have to say though; with all things being equal it does look like this market once the break to the upside. As long as we are above 1.04, we are certainly not comfortable shorting it.
If we managed to break above the 1.0475 level on a daily close, we think this opens the door to the 1.06 handle. If we get above that, we see stops of the 1.08 and 1.10 levels going forward. It isn’t until we break down below the 1.03 level that we are comfortable enough to start shorting this pair.
Written by FX Empire