AUD/USD climbed again on Tuesday, but gave much of the gains back. As a matter of fact, the pair ended the day by forming a shooting star. However, there is a fairly significant hammer on Monday supporting the pair, and it looks like more of a consolidation play than anything else at this point.
We don't see this market as a possible sell until we close on a daily chart sub-1.04. Until then, we like buying the Aussie on pullbacks, and do continue to expect the pair to follow the technical analysis that pointed out the triangle being broken to the upside. That triangle said we were going to 1.12 before it was all over with. Until we reenter that area, (hence the sub-1.04) we have to assume that is where we are going.
AUD/USD Forecast February 1, 2012, Technical Analysis
AUD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3