The AUD/USD pair fell for most of the session on Monday, only to turn around and bounce hard to form a hammer. The market is currently hanging around the 1.02 level and the 61.8% Fibonacci level as a result. The area looks as if it could be a decent “launching pad” if we get a surge for a run to the 1.04 level. In truth, this is the move we prefer. However, the breaking of the bottom of the daily range for Monday would be disastrous. The Federal Reserve meeting over the next two days could be the deciding factor in the long run as another round of easing would hurt the USD. If not – this pair could fall.
Written by FX Empire