The AUDUSD pair fell slightly during the session on Friday, but as you can see bounced a bit in order to form a hammer like candle.

This coincides very nicely with the gold markets, as it looks like both of those markets are oversold.

Nonetheless, this bounce should simply offer value in the US dollar, so we are sellers on a resistive candle as the 0.75 level should be pretty significant resistance above.

Ultimately, the market should then head to the 0.70 level given enough time. Nonetheless, we anticipate quite a bit of volatility either way.

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.

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