The AUD/USD currency pair fell during the session originally, but found support as we formed yet another hammer just below the 1.04 level. This market looks like it’s trying to grind higher, and as such we are bullish of it once it clears the 1.05 or resistance area. Until that happens however, we think this market will continue to grind sideways and not be very tradable.
As for selling is concerned, if we managed to break the 1.03 level, this would lead to an attempt at the 1.02 support level. If this area gives way to the sellers, this market could begin to selloff down to the parity level in relatively short order. In the meantime, we simply wait until this market breaks one of those two levels.
Written by FX Empire