The AUD/USD pair shot straight up during the session on Wednesday, as you can see breaking well above a significant amount of resistance at the 0.9050 level. However, there still significant resistance of the 0.92 handle, and the 0.93 handle. That being the case, we think that a pullback is probably coming fairly soon, and a resistive candle would be an excellent selling opportunity as the pair has been beat down so much of the last several months. However, during the summer we have seen a lot of consolidation, and therefore we don’t expect a massive break down until the Federal Reserve makes its decision about tapering off of quantitative easing.
Written by FX Empire