AUD/USD Forecast May 22, 2014, Technical Analysis

The AUD/USD pair fell during most of the session on Wednesday, but found enough support closer to the 0.92 handle to turn things back around and form a hammer. This hammer is sitting just that the bottom of the larger consolidation area, so therefore we like the idea of buying on a break above the 0.9250 handle. That point time, we would expect this market to go to the 0.9350 level, and then possibly even higher. On the other hand, if we break down below the 0.92 level on a daily close, that would be very negative and probably send this market down to the 0.90 level.