The AUD/USD pair fell during the bulk of the session on Monday, but as you can see bounced and formed a nice looking hammer. This hammer suggests that the market is going to go higher, and because of that, we feel that the market should attract buyers for the short-term. However, the 0.9250 level, which was once support should now be resistance, so what we are waiting to see is whether or not that level offers enough resistance to start shorting again. Alternately, a break of the bottom of the hammer also has a shorting this market as it would be a sign of extreme weakness.
Written by FX Empire