The AUD/USD pair gained during most of the session on Tuesday as the parity level held as support. Yesterday we mentioned that this area could produce some type of reaction, and a quite obviously has. With the 50% Fibonacci retracement level being right there and of course the parity level – it was bound to happen. The real question is going to be whether or not there is any sustainability to it.
With all of the problems facing the rest of the world, it seems unlikely that this pair will continue to rise over time. Because of this, we prefer to sell this market but only after we see some type a significant rally that shows weakness in the end. We suspect that the 1.02 level will offer enough resistance to send this market down. The breaking of the lows from the Monday session also could be assigned to start selling again. In the meantime, we are very flat of this market.
Written by FX Empire