The AUDUSD pair initially fell during the course of the session on Tuesday, testing the 0.74 level.

That area caused quite a bit of a bounce, and as a result it looks like we are going to continue to show quite a bit of volatility just below the 0.75 handle.

That of course is a large, round, psychologically significant number, so it’s not a big surprise if we do continue to find ourselves attracted to that level. However, we are sellers, not buyers.

We believe that a break down below the bottom of the hammer would be a nice selling opportunity, just as a resistive candle near the 0.75 handle.

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