The AUD/USD slammed into the 1.05 level on Monday, and pulled back slightly. The area proved to be massively resistive, but the candle is closing towards the very top of the range, which is always a bullish sign. The 1.05 area level is considered massively important, not only because of the technical resistance, but also because of the fact that it is a “large round number”. The pullback was late in the session, so it is hard to put a lot of weight on it. However, looking towards the shorter time frames might be the way to go in order to see if we are going to fall again. The trend is decidedly up over the last couple of weeks though, so shorting is tough. A daily close above the 1.05 level has us buying.
Written by FX Empire