Talking Points
- AUD/USD Technical Strategy: Shorts Preferred
- Absence of Reversal Patterns Suggests Declines To Continue
- Push Past 0.9130 To Open Run On 0.8990/0.9000
AUD/USD may have further to fall as an absence of bullish reversal candlestick patterns casts some doubt on a corrective bounce. This pair’s seamless push past the 0.9130 mark casts the spotlight on the 0.8990/0.9000 barrier.
AUD/USD: Breakout Leaves Void Of Bullish Reversal Signals
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
As noted in yesterday’s candlesticks report the four hour chart was warning of an intraday correction for the Aussie. A Bearish Engulfing formation near the 0.9210 barrier indicated a shift in sentiment for the currency. Against the backdrop offered by the daily, the push below the 0.9120 floor may open the 0.9000 handle.
AUD/USD: Bearish Engulfing Pattern Delivers Intraday Drop
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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