The AUD/USD pair fell during the Friday session, after forming a hammer on Thursday. Because of this, we are looking at a market that could be heading into a consolidation move. The 1.04 level is important, and extends down to the 1.03 handle. The 200 day EMA is just above the pair, and as a result we think that there is a serious debate going on at the moment. The area will be a great entry point from the long side, but we need to see some kind of bounce at this point. If we break the bottom of the hammer on Thursday, we would see further weakness in this pair. On a daily close above the 1.04 level, we would go long again.
Written by FX Empire