The AUD/USD pair broke the top of the hammer that we formed on Monday during Tuesday’s action, and as a result a bullish buy signal has been sent out. We believe this market will continue to grind higher, and possibly attempt to go as high as 1.0580 or so. If we can get above the 1.06 handle, this becomes a long-term buy-and-hold type of signal in this market, and has a target of 1.10 if it happens. This would be a longer-term trade, but we do believe that the Australian dollar has been unfairly beat up on lately, and as a result we are willing to go along right now.
Written by FX Empire