The AUDUSD pair initially fell during the course of the session on Wednesday but turned around to form a hammer.

It is preceded by a shooting star on Tuesday though, and as a result it looks as if the markets are simply going to bang around the 0.73 level.

On this chart, I have the 200 day exponential moving average plotted, which of course is often used by long-term traders to determine the overall trend.

If we can break down below the bottom of the hammer for the session on Wednesday, it’s likely that the market will continue to reach towards the 0.70 handle.

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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