The AUD/USD pair fell during the day on Wednesday, but bounced off of the lows again, and therefore ended up forming a hammer. The hammer of course is a bullish sign, and as a result we could get a bit of a bounce from here. Nonetheless, we recognize that we are in a very negative market, and therefore we don’t really like the idea of buying anyway. A break down below the bottom of the hammer is very negative, and would have us selling rather rapidly. Regardless, we feel the Australian dollar has more room to the downside.
