Weekly bullish hammer candlestick in AUDUSD

AUDUSD made a new lower low the past week at 0.6677 but managed to close near its weekly highs around 0.6784 forming a bullish hammer candlestick pattern. This bullish pattern in order to be confirmed needs a bullish follow through the coming week.

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As pointed out in previous posts, in the 4 hour chart the AUDUSD pair has been showing bullish divergence signs in the RSI. The weekly candle implies that a bounce is coming and we should expect more upside the coming weeks. Price has so far retraced nearly 38% of the decline from 0.7081 and our minimum bounce target is at 0.6930. The weekly hammer gives us hopes for a longer-term and bigger bounce even above 0.7050 but it is too early to tell if this will be the case. The foundation has been placed, we now need to see strength from buyers and a sequence of higher highs and higher lows on a daily and weekly basis.

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