The AUD/USD pair had a strong showing on Wednesday as the United States Congress seems to have come up with a solution to the so-called “fiscal cliff” debacle that has pushed markets around back and forth over the last several weeks. We found quite a bit of resistance of the 1.05 handle, and this would’ve been expected. The candle is pretty long though, and definitely green so it does suggest that a move above the highs from the Wednesday session signals much higher prices. The 1.06 level above is considered to be massive resistance, and if we can get above that level we would expect to see this pair go much, much higher. At this point time, we have no interest in selling this pair although we do see a shooting star on the four hour chart at the 1.05 resistance level.
Written by FX Empire