The AUDUSD pair fell during the day on Tuesday, but found enough support below to turn things around and form a candle that looks suspiciously like a hammer.
With this being the case, I break above the top of the hammer would be a bullish sign, as the market should then reach towards the highs yet again.
On the other hand, if we break down below the bottom of the hammer, we feel that the market will try to grind its way down towards the 0.71 handle.
The market will be volatile as Australian Unemployment numbers come out.
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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