The AUD/USD pair fell initially during the session on Monday, but as you can see bounced enough to get back above the 0.89 handle, and form a hammer. Quite frankly, although this is a positive sign, we are not interested in buying the Australian dollar, simply because we see far too much resistance all the way up to the 0.93 handle. Because of that, we are simply looking at this as a potential selling opportunity, and will do exactly that at the first signs of resistance above. Also, a break of the bottom of the hammer is a selling signal as well.
Written by FX Empire