The AUDUSD pair fell during most of the session on Wednesday, but found enough support closer to the 0.92 handle to turn things back around and form a hammer.

This hammer is sitting just that the bottom of the larger consolidation area, so therefore we like the idea of buying on a break above the 0.9250 handle.

That point time, we would expect this market to go to the 0.9350 level, and then possibly even higher.

On the other hand, if we break down below the 0.92 level on a daily close, that would be very negative and probably send this market down to the 0.90 level.

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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