The AUDUSD pair initially fell during the course of the day on Monday, but as you can see found enough support below to turn things back around and form a nice-looking hammer.

This hammer of course suggests that the market is going to go higher, and as a result we think that the Australian dollars going to make yet another attempt at the 0.95 level.

Can get above that level, this market should head to the parity level, which of course has been a longer-term significant level.

Pullbacks should continue to be buying opportunities, as the Australian dollar should eventually break 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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