The AUD/USD pair initially fell during the session on Thursday, but as you can see bounced enough to form a hammer. We are currently bouncing around the 0.9650 level, an area that is supportive for the longer-term charts. However, this selloff has been rather brutal and it appears that the Chinese economy is slowing down somewhat. This is of course important as the Australian economy is so highly tied to the mainland, and because of this we think that watching what’s going on in China will lead the direction for this market. Right now though, it should be noted that we look like were ready to start bouncing. A move above the 0.99 handle would be enough to get us to start buying, while a weak candle on this rally would be more than enough to get us to start selling.
Written by FX Empire