AUD/USD Forecast March 5, 2013, Technical Analysis

The AUD/USD pair fell during most of the session on Monday, but as you can see bounced in order to form a perfect hammer. In fact, what’s so interesting about this is that the technical buy signal is a move above the 1.02 handle, which of course was the massive support level for the huge consolidation area that the market has been banging around in. With that being the case, the Australian dollar has been very impressive in its fight on Monday, and this could signal that the sellers have simply exhausted themselves. Because of this, we believe that buying above the 1.02 level is probably the way to go, or if we get a break down below the bottom of the range for Monday, this of course would be a very bearish signal.



Written by FX Empire