Forex trading started very well for the Aussie. It got an Easter bunny – getting close to the major resistance line. Will it break it on thin trading?
AUD/USD started this forex trading week with a blast. It closed last week’s trading at 0.7191, which was within the trading range last week. In the wake of the new week, it rose significantly, and got very close to the major resistance line o.7267.
It currently trades at 0.7238, above the high point that it reached on April 3rd – 0.7229. Earlier today, AUD/USD traded at 0.7249, a touching distance from the line.
Why is this line so important? This was the peak on January 6th and on January 7th. The Aussie tried to break this line during two consecutive days, and failed. It was also the peak on October 14th – a place where the Aussie bounced back to, after the huge fall on October 6th.
Last week was an important week for the Aussie. Lots of economic indicators were released. The small RBA rate cut, Home Loans and employment data didn’t move the Aussie out of it’s comfort zone – a rather narrow range.
Now, with Easter’s thin trading sessions, it got close to the danger zone. Will a few traders push it over the top? Will the resistance line hold and bounce the Aussie back?
AUD/USD is my most predictable currency pair, and I enjoy following it. Stay tuned!