The AUD/USD pair fell during the Monday session and managed to bounce off of the 1.05 support level yet again. This doesn’t seem like much to us, and as such we treated more or less as consolidation of a market that is looking for some type of catalyst to move higher.
In a world where central banks are firing up the printing presses, commodity currencies will get a bid going into the future and we think that without a doubt the Australian dollar is one of the most interesting currencies from this perspective. It does track well with the gold markets, and as such we think that the two will explode to the upside at the same time.
What’s most impressive about this currency pair is that although we are in an up trending channel, and have even hit the resistance line, we haven’t fallen – we simply gone sideways. This shows that although there is a bit of exhaustion in the markets right now, there’s nobody willing to step in to start selling aggressively. With this in mind, we are buyers on a break above the 1.06 level.
Written by FX Empire