The AUDUSD pair rose during the day on Wednesday, breaking above the recent highs that we’ve seen hold as resistance.

Ultimately though, we are still sellers as the 50% Fibonacci retracement level offered quite a bit of resistance late in the day.

Beyond that, we have the uptrend line that we had previously broken through, and that should now be resistance not to mention the fact that we have the 61.8% Fibonacci ratio just underneath that line.

In other words, we see far too much in the way of danger above to continue going higher for any real length of time, so we simply wait to see whether or not we get an exhaustive candle in order to start selling.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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