The AUDUSD pair broke higher during the course of the day on Wednesday, clearing the top of the hammer that had formed on Tuesday.

This suggests that the Australian dollar is going to go higher, and the gold markets going much higher during the session also should be another catalyst to go higher.

Having said that though, there is a massive cluster of trades just above that will keep this market from going higher easily.

With this, we are waiting to see whether or not we get a resistant candle in order to start selling. Other than that, we are 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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