The AUD/USD pair had a strong showing on Tuesday as we managed to break above the 1.05 level again. This level however acted as resistance, and as a result we are just basically closing right at it. We believe that the move from 1.05 to 1.06 is going to be difficult, and as a result we are not willing to start buying until we get above the 1.06 handle, which in turn would signal a longer-term breakout. This is our base case eventually, but we think that the market will more than likely have somewhat of a sideways feel to it for the very short-term. With that being the case, we are on the sidelines but very interested above the 1.06 handle.
Written by FX Empire