The AUD/USD pair had a positive session during the Wednesday trading hours, breaking above the 1.0325 level. This area had been a minor resistance area; the now appears that we are heading towards 1.04.
With this being said, we are perfectly comfortable buying the Australian dollar at this point, but do recognize the 1.04 level as a potential barrier to get over. Ultimately, we believe that the 1.06 level will be tested as the Australian dollar has underperformed many of the other commodity currencies lately. Going forward, we believe that buying on the dips is also a very viable alternative to simply going long.
Written by FX Empire