The AUD/USD pair rose on Friday as traders bought risk-related assets after the Bernanke speech at Jackson Hole. The lack of need for more QE in the US gave a lot of traders hope for more economic growth. Technically, a close above 1.05 is a good sign for the bullishness of this pair, but one should note that the 1.06 level has been the top of this resistance level, and it didn’t get broken. Until we break above the 1.06 level on a close, we are a little gun shy about buying the Aussie. However, it looks strong enough that we certainly won’t sell it. We buy above 1.06 if and when we get there.
Written by FX Empire