The AUD/USD pair fell most of the session on Friday, only to turn around and bounce during the US session. This shows that there is a lot on the market’s mind and a lot of confusion as well. The weekend has Chinese data, and the possibility of a solution to recapitalize the Spanish banks. Because of this, the pair could be volatile, but the signal to trade is taken by the next hammer or shooting star to get broken. If we break above the shooting star form Thursday, this pair should travel higher. If we break the bottom of the hammer for Friday, this pair will fall. In the meantime, we simply wait for a breakout.
Written by FX Empire