The AUD/ USD pair fell on Monday initially, but bounced in order to form a nice-looking hammer. This hammer suggests that we are going to break through the 1.05 level, and continue higher. This is the base case that we have a bullish move coming, but do recognize that the 1.06 level will be resistive. Going forward, we think that level could get broken to the upside, and as a result will be watching this pair. On a move above 1.05, we see a short-term buying opportunity in this market. As for selling is concerned, we are not interested in it anymore as we see far too much clustering around the 1.04 level in order to be comfortable doing .
Written by FX Empire