AUD/USD Forecast May 16, 2013, Technical Analysis

The AUD/USD pair fell during the session on Wednesday, as the 0.99 support level gave way. However, you can see that there was a bounce towards the end of the session that formed a nice looking hammer. This hammer suggests that we could perhaps get a bounce from here, and retest the parity level yet again. We believe that if the top of the hammer gets broken to the upside, that is exactly what will happened. However, we believe that weakness will continue in the Australian dollar overall, and as a result it should end up being a selling opportunity. If you are short-term trader though, it could be a little bit of room for a small position to the upside on that move higher.

 

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Written by FX Empire