The AUD/USD pair fell during the balance of the session on Tuesday, but as you can see found enough support just above the 0.93 handle in order to form a hammer. Bouncing that hard, we still find ourselves below the 0.95 handle, so this does take a little bit of the luster off of a potential bounce. That being the case, we expect the market to continue to fight around the 0.95 handle, and as a result we figure that this market will more than likely be choppy and volatile for the next couple of sessions. On a break below the bottom of the hammer, we would become aggressively short of this market. We also would become aggressively short of any resistive candle close of the 0.95 handle.
Written by FX Empire