AUD/USD fell originally for the session on Friday, but managed a bounce later to form a hammer. The candle is sitting just below the vital 1.04 resistance line, an area that has contained the market for quite some time.
The market is forming an ascending triangle which is normally a bullish sign. The 1.04 level is the top of it and on a daily close above it – we are buyers. A break below the uptrend line at the bottom of the triangle has us selling as well, but only down to the parity or 0.99 level as we see both of those as supportive.
If the gold market breaks out to the upside, this pair will more than likely follow.
Written by FX Empire