The AUDUSD pair tried to rally during the session on Friday, but as you can see gave back almost all of the gains in order to form a shooting star.

The shooting star of course is a very negative sign, and the fact that we formed a right around the 0.9350 level suggests that the market is in fact going to pull back from here.

We believe this is a short-term pullback though, as there is significant support at the 0.9250 handle. Ultimately, we prefer to buy the pullback as opposed to sell this candle.

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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