The AUD/USD pair managed to bounce after falling through the 1.05 level that acted as support. The fact that the daily candle ended up is a hammer is also very bullish, and as such we think that this pair will more than likely rise in the near term.
The 1.06 level will act as resistance, but only in a minor sense. Looking at this chart, it is obvious that we have been in an up trending channel for some time. And simply have grinding away sideways in order to get to the point where we find ourselves. As for selling, we do not like selling this pair until we break well below the 1.03 level. This does look like something is going to happen anytime soon, so we are simply a “buy only” trader when it comes to the Australian dollar. On a break of the highs for the Wednesday session, we would be buying again.
Written by FX Empire