The AUD/USD pair rose during the Tuesday session as the “risk on” trade came back into vogue around the world. Stock markets and commodities rose on the whole, and as a result the riskier currencies were bought – with the Aussie being no exception.
The recent bounce in this market was from the 50% Fibonacci retracement level, and the 1.02 handle. The 200 day EMA is just above, and in fact that market fell back down from that level. It is because of this that we are still a bit cautious about going long of the Aussie, and would wait until we get a daily close above the 1.0450 level as it would be a higher high. We are not selling, and as a result are simply waiting at the moment as we see better opportunities elsewhere.
Written by FX Empire