The AUD/USD pair fell for most of the session on Thursday, but bounced late in the day to form a nice looking hammer at the 1.04 area. This area was the site of a significant breakout a few months ago, and now looks as if it wants to be supportive. The 200 day EMA is in the area, and the 38.2 % Fibonacci level is there as well. The pair has been bullish for a long time now, and as such we are willing to be long on a break of the highs from the Thursday session. We will not sell until we get below the 50% Fibonacci retracement level in the 1.0250 level.
Written by FX Empire