AUD/USD Forecast May 20, 2016, Technical Analysis

The AUD/USD pair initially fell during the course of the day on Thursday but found enough support below the 0.72 level to turn things around and form a hammer. The hammer of course is a very positive sign, but there is a significant amount of bearish pressure in this market that keeps us from buying. In fact, the 0.73 level will be resistive, just as the 200 day exponential moving average above it will be. We are going to either sell on exhaustive candle after a bounce, or sell a break down below the bottom of a hammer.