The AUD/USD pair fell during the session on Tuesday as the consolidation between 1.05 and 1.06 continues. The market does look healthy overall, and unlike its cousin the New Zealand dollar, the Australian dollar is an overextended. Is because of this that I think the most likely course of action will be a sideways move until we can build up enough positive momentum to breakout and above the 1.06 handle. Above there, I believe that we will eventually reach the 1.10 level. As for selling, I think there is far too much support at 1.05, 1.04, and 1.03 in order to do so.
Written by FX Empire