The AUD/USD pair fell on Tuesday, but bounced at the end of the session to form a hammer. The bullish candle looks as if it is reiterating the support at the 1.01 level. The pair has been grinding lower over time, and we think that trend could continue, but there looks to be a bounce in the short-term. Because of this, a buy signal is generated if we break the top of the Tuesday session. The move could signal a run to 1.04 or so, but we think it is just a short-term trade at this point. With the Aussie being so sensitive to headline risk, we are not inclined to own it for too long. A break below parity has us selling.
Written by FX Empire