AUD/USD fell hard on Monday, but managed a large bounce in the US session to form a hammer at the 0.97 support level. The level looks like it is going to produce a bounce, and this would not be unexpected in the big scheme of things. This area is going to be a sort of “last stand” for the Aussie, as if it gives way – the pair would fall much, much farther at this point. However, even if we do pop to the upside from here, we see the parity level just above as massive resistance at this point and would be quick to take any profits in the case of a long position. For the most part, we are content to wait until parity to short this pair on signs of weakness.
Written by FX Empire