AUD/USD rose again on Tuesday as the commodity currencies got a bid yet again. The triangle that we have been watching in this pair was pierced, but the breakout was beaten back by the resistance. The pair looks very strong, but we didn't get that daily close above the 1.04 handle that we wanted to see in order to get long. The market will now have to be watched in order to see if it falls as markets will sometimes do this before a reversal. The breaking of the uptrend line at the bottom of the triangle would be a massively bearish signal and we would need to see that in order to sell. In the mean time, we are waiting to see if we can close above 1.04 in order to buy, or break the uptrend line of the triangle in order to sell.
AUD/USD Forecast January 18, 2012, Technical Analysis