The AUD/USD pair had a back-and-forth session on Thursday as we continue to bounce around below the 1.04 handle. We are still above the 1.03 handle however, and as a result we are not bearish yet. In fact, it will take a daily close below the 1.03 handle in order for us to start selling, and until then simply will not do so. A daily close above the 1.04 handle would be bullish enough for us to start buying though as it would prove the area below had in fact produced significant support.
Having said all that, we are at the end of the year and in the last two trading sessions. With that being said, it’s unlikely that there will be enough liquidity to produce any type of decisive signal in this pair. We feel that this market will more than likely rise over time, but we may have to wait until January to see that signal.
Written by FX Empire