AUD/USD rose on Monday as the 1.04 handle was tested as resistance. Having said that, this is an area that we would expect to see sellers step back into the marketplace. With this being the case, we are not ready to start buying this market until we get above the 1.05 level, an area that looks like the most recent high.
There are far too many headline risks out there going forward, and because of this we are not comfortable going long the Australian dollar. On a resistant candle somewhere in this general vicinity, we are more than willing to start selling this market yet again. We think that the 1.03 level will offer support, but then again it is minor in its nature. We believe that 1.02 is much more supportive and significant.
Written by FX Empire