Now that AUDUSD has formed a hammer candle on the hourly chart at the low of .8672 (support) and is rallying from there, we'll have to wait to see how it behaves when it gets back to .8737 (50% of the move from .9406 to .8067). The pair is overall bullish (what else is new?) so, even though I believe a more serious correction is overdue, it may pop back up. There is still a confirmed double bottom with a price target of .9030. On the other hand, the pair is edging lower and time and price are out of synch. It would not be illogical to expect a return to the confirmation point of the double bottom at .8551. Bottom line here is that this requires patience to see what will unfold.
Here's the hourly chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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