The AUD/USD pair initially fell during the course of the session on Friday, but turn right back around to form a hammer. Quite frankly, this is a market that has sold off rather drastically after the Reserve Bank of Australia cut rates. That being the case, it’s not surprising to see all of the red candles, but the fact that we formed a hammer suggests that we are more than likely going to have to retest the 0.75 level for resistance. Short-term bounce makes sense, but we would anticipate selling just above.
