The AUD/USD pair rose above the parity level on Tuesday as the commodity trade took off. The appetite for commodities was fueled by hopes of an EU workout. The pair has lost a bit off the top, but is closing above the parity line. The trend is certainly down, but with this strong of a push higher – we certainly must be aware that this move is countertrend. The 50% retrace of the move down is roughly at 1.03, and area that has been resistive in the past. With this in mind, we are quick to take any profits on long positions. We actually prefer being short of this pair, but not until we get some price action showing weakness.
Written by FX Empire