The AUDUSD pair broke higher during the day on Tuesday, clearing the top of the Monday hammer.

We suggested that this market would go higher, and it did exactly that.

However, we have a significant amount of resistance between the 0.9450 and the 0.95 handle, meaning that we will have to be very cautious about taking long positions at this point.

I daily close above 0.95, we would be much more comfortable going long.

Until then, we will look at this market with caution, and keep our trading capital safely on the sidelines.

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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