The AUD/USD pair initially tried to rally during the session on Tuesday, but failed and ended up closing lower. This candle is an outside candle, and as such it looks like we could be setting up for a pullback.
In our opinion, this will be a return to the consolidation that seems to war risk around the 1.04 level. With that being said, we think that weakness could be coming into the marketplace, and a short-term trader may take advantage of a break of the lows from the Tuesday session in order to pick up about 50 pips or so. On a break of the highs, this market should go looking for the 1.06 level.
Written by FX Empire