By FXEmpire.com
AUD/USD had a strong week thanks to the surge we saw Friday based upon the good news out of the European Union summit. The commodity markets are rallying, with gold been especially strong. This of course fits in with the correlation between the Aussie dollar and the gold markets, as both of them so strong moves.
The 1.0250 level will now be the resistance that this market must overcome. The fact that the pierced the top of the shooting star for the previous week is a good sign, and should have the markets at least aiming to break this level. However, we have been burned by the European “solutions” before, so there should be great care taken in going long anything risk related. Truth be known, we would be much more comfortable shorting this market, but we see no catalyst to do it at this moment in time. If we could short this market on a break below the parity level we would do so and aim for the 0.95 level. Going long, we would have to see the 1.0250 level broken on the daily close in order to buy and aim for 1.04 or so.
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Originally posted here
