The AUD/USD pair broke higher during the course of the session on Tuesday, clearing the top of the hammer that informed on Monday. That being the case it looks as if the market will try to reach towards the top of the ascending triangle, which has been such an important part of this market. If we can break above the top of the ascending triangle which is roughly at the 0.74 level, we feel that the market can go much higher. In the meantime, though, we think that short-term pullbacks will be short-term buying opportunities and that’s probably how you will have to play this market.
