AUD/USD broke out on Wednesday from a triangle that had kept it under pressure for the last month or so. The solid close at the end of the session foretells higher prices, and the market looks set to continue the rise as we are breaking the very last bits of resistance at the close. The close of the candle is solid, and the top of the range is where we stand.
The 1.04 level was significant resistance, and it appears that the level should be supportive going forward as well. The triangle that was just broken actually measures all the way up to 1.12, and because of this – we have become “buyers only” of this pair as of today. On a pullback and support at 1.04, we are buying. On a break of the Wednesday high, we are buying. Selling cannot be done as long as we stay above the 1.04 level mentioned above.
Written by FX Empire