A small bullish Hammer at Monday’s low has been formed from very close to .8990, a 62% pullback to the entire 2014 AUDUSD gains (.8658-.9506) and the end to a sequence of lower daily highs on Tuesday is positive for sentiment. Yesterday’s over 1 Big Fig rally from the base has improved signals, though the rally is probably corrective.
However, with no sign yet that demand is ending, the outlook for Wednesday is to buy on the open and at .9050, with a stop loss at .9029, yesterday’s opening trade. Targets are to .9090, .9113, yesterday’s high and .9143, a 38% recovery to September’s losses.