The AUD/USD pair fell during the session on Tuesday, but as you can see bounced rather hard from the 0.9550 handle. This resulted in a hammer, which of course is very supportive. However, we are most definitely in a downtrend, so we are not looking to buy any type of move down here, rather looking for selling opportunities at higher levels. If we get some type of resistive candle above, and especially at the 0.9250 level, we would be more than willing to start selling this market on those resistive candles as it should be a continuation of the downside. On the other hand, if we break the bottom of this hammer, we think that the next target will be 0.90, which that giving way would be disastrous for the Australian dollar.
Written by FX Empire