To learn more click here
The AUD/USD pair spiked initially during the Thursday session, only to turn around after the ECB disappointed markets. The "risk off trade" had the Australian dollar selling off, and we have formed a shooting star for the day. The 1.05 level now looks to be extremely resistive and a break lower from here has a searching for the 1.03 level.
The 1.03 level is the bottom of the up trending channel, and as such we think it will be an extraordinarily supportive area. We won't sell this pair, rather we are willing to let it fall and look for that supportive action. At that point in time, we will go long if presented the trade. Alternately, we could break through the top of the shooting star for the Thursday session, and this would be extremely bullish having is go long as well. On a daily close below the bottom of the up trending channel however, we would be selling.