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

The hammer of course is a positive sign, and as a result we feel that this market will go higher from here.

If we can get above the 0.88 level, we could go as high as 0.90 given enough time, but we still believe that ultimately this pair will continue to fall.

On the other hand, if we break the bottom of this hammer, it’s very likely that we will break down and head to the 0.85 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.

Content curiosity of FOREXCycle