The AUD/USD pair fell during the session on Tuesday, but as you can see got a little bit of a bounce off of the 0.8950 handle. The resulting bounce formed a hammer, which of course formed right after a shooting star from the previous session. It appears that we are going to fight right around the 0.90 level for the next move in this pair, and that of course makes sense as it is a large round psychologically significant number. That being the case, we think that this pair is probably best avoided in the short term, as it simply looks confused.
Written by FX Empire