The AUDUSD pair fell initially during the course of the day on Tuesday, but found enough support to turn things back around and form a hammer.

The hammer of course is a bullish sign, so we can break above the top of it it’s likely that we will continue to go higher.

However, I see a massive amount of resistance near the 0.73 level, and of course the 200 day exponential moving average. Quite frankly, any rally should be a selling opportunity, just as a break down below the bottom of the hammer would be.

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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