The AUD/USD pair fell during the session on Monday originally, but bounced back in order to form a hammer just under the 1.05 level. The 1.05 level continues to be important for this marketplace, and the fact that we simply have not been able to close above it does suggest that it is significant resistance. It is exactly because of this that we think a daily close above the 1.05 level is such a valid buy signal. We need to clear the 1.0525 level as well in order to become bullish again, but we do think this is about to happen. The 1.06 level above should be resistance, but we ultimately believe that this pair is going to the 1.10 level.
Written by FX Empire