The AUDUSD pair fell during the session initially on Thursday, but found enough support to turn things back around and form a hammer.

It now looks like the 0.88 level is supportive, and we could bounce back to the 0.90 level.

Because of that, we think that there could be short-term buying opportunities on a break above the top of the hammer, but truthfully we are more comfortable selling at higher levels and simply will stay out of the marketplace.

On a break below the bottom of the hammer, we feel that this market will go back down to the 0.8650 handle.

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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