The AUDUSD pair initially fell during the course of the session on Wednesday, finding support near the 0.7650 level.

Ultimately, the market looks as if it wants to go higher though, because we ended up forming a hammer.

With that being the case, the market looks as if it is ready to start grinding its way back towards the 0.80 level, but we recognize that the level is probably the “ceiling” in this market.

Ultimately, we believe that the market won’t go above there, so we think a short-term buying opportunity may present itself, but at this point in time we would be very cautious buying.

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