The AUDUSD pair initially fell during the course of the day on Friday, but found enough support below at the 0.71 level to turn things back around and form a bit of a hammer.

The hammer that has formed during the session suggests that we are going to go higher, and as a result we are buyers above the top of the range for the day.

With this, the market should then reach towards the 0.7250 level. We believe that there is a massive amount of support below the hammer from the Thursday as well, and as a result we are “buy only.”

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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