AUD/USD fell for much of the Friday session as the US jobs number disappointed. The candle did find a bit of a bounce at 1.02, and as such it does look like there is some form of support at this area. It should also be noted that the market had formed a large bullish candle based upon the European summit previously that ends just about where we found support.
However, the fact is that the larger time frame charts do tend to trump the shorter time frame charts. With this in mind, we can’t help but notice that the weekly chart in this pair has formed a very bearish looking at shooting star. With this in mind, we believe selling on a break of the lows from Friday would be an acceptable position. In essence, you would be shorting the weekly shooting star at that point. As for buying this pair, we believe that a break of the previous two shooting stars on the daily chart would signify enough strength that we would feel comfortable going long.
Written by FX Empire