The AUD/USD pair has been moving sideways since the 15th of January 2016, with the price travelling between the levels of 0.6956 and 0.6827.
During the course of the day on Wednesday, the pair fell down to 0.6827, but found enough support to turn things back about around and end up forming a hammer. Today, the pair followed the same pattern, reaching the daily lows of 0.6875 to bounce back up to the highs of 0.6979. Taking into consideration that the market is still quite negative, the price would probably correct once again to the downside. In the event that the pair breaks below 0.6898, the market could go down to 0.6875 and 0.6827 respectively.
Alternatively, in the scenario where the price manages to break above the barrier of 0.6979, the price could escalate up to 0.7001 and 0.7032 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.