The AUDUSD pair broke out during the day on Wednesday as we cleared the uptrend line that had previously been so resistive.

Because of this, looks as if we should continue to go higher in the Australian dollar as we are now starting to show real signs of strength.

A move above the 0.73 level is reason enough to start going long, and with that being the case, we are bullish. We don’t have any interest in selling quite yet, but an exhaustive candle in this area could be thought of as yet another pullback waiting to happen.

It looks as if gold (GLD, quote) is about to break out, so that could also push the Aussie higher.

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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