The AUD/USD pair fell during most of the session on Friday, but as you see bounced significantly off of the 1.0350 level, in order to form a hammer. This hammer is focused on the 1.04 level, which of course is a natural place to find support.
However, looking at the weekly chart you can see a shooting star. By far, the best way to play chart like this when it doesn’t show any clear or concise direction is to simply ignore it. Because of this, we need to see the Aussie move to either the 1.02 level in order to find support, or the 1.06 level in order to find resistance. A breakout in either direction of course gets our attention, but in the meantime this market looks like it’s going to be very choppy and therefore not interesting to us.
Written by FX Empire