The AUDUSD pair initially fell during the day on Monday, but as you can see found enough support to turn things back around and form a hammer. This hammer tells us that the market wants to go higher, but we need to get above the 0.9350 level in order to feel that we reenter the consolidation that leads to the 0.9450 handle.

Ultimately, we believe that the market is trying to build up enough momentum to break out, which would be signified by a daily close well above the 0.95 handle.

Once we get back, we are longer-term buy-and-hold type of traders.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

Content curiosity of FOREXCycle