The AUDUSD pair fell initially during the day on Thursday, but you can see found enough support below to turn things back around and form a hammer.

This hammer sits just below the 0.90 handle, and if we break above the 0.90 level at this point in time, we believe that the Aussie dollar will get a significant bounce.

On the other hand though, if we break the bottom of the hammer from the session on Thursday, this would be a very negative sign, and should send this market looking for the 0.88 level.

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.

Content curiosity of FOREXCycle