The AUD/USD pair rose during the majority of the session on Friday, but failed to gain any significant move let alone hold onto significant gains in order to impress upon the market the validity of a breakout. The 1.05 level continues to hamper the effort of the buyers, and as such it does look like we are starting to see bullish pressure buildup, but is not been released yet. On a daily close above the 1.05 level, we feel that the pair will have broken out at that point.
The 1.06 level would be significantly resistive going forward, and we think a break above that would signal much higher levels as it would be a significant break out. Alternately, if we managed to break down below the 1.03 level, we feel that move down to 1.02 would happen. In between here and 1.03 however is a plethora of minor support areas.
Written by FX Empire