The AUD/USD pair was very quiet on Monday as the markets took a breather from the bullish run that we saw on Friday. Perhaps the move was a little bit overextended, and this of course would cause markets to either pullback, or sit still like they did during the Monday session. Looking at it this way, it does suggest that there is underlying strength in this market as there was no pullback. This is very bullish overall for the Aussie, and it is because of this that we think the next move is more than likely going to be higher.
The 1.0250 level has been support and resistance over the last several months, so the fact that we stopped right here isn’t a big surprise. Looking at this pair, we think that a significant breakout above the top of Monday’s range would be enough to start buying again. As for selling, it’s going to be difficult to do until we are below the parity level again.
Written by FX Empire