The AUD/USD pair initially fell during the course of the session on Thursday, breaking well below the 0.70 level. However, we found more than enough support just below to turn things back around and form a hammer. Because of this, and the fact that the gold markets shot much higher should mean that this pair goes higher in the short-term, perhaps reaching towards the 0.7150 handle. On the other hand, a break down below the bottom of the hammer would be very bearish. We actually prefer to sell rallies as they run out of strength.
