Strategy: Pending Short
AUDUSD completed a bullish Morning Star candlestick pattern above support at a falling trend line connecting major lows since July and took out initial resistance at 0.9711, the 23.6% Fibonacci retracement level. The door now looks open for a move higher to challenge the 38.2% Fib at 0.9912. We will treat this rebound as corrective in the context of a larger down trend and look for selling opportunities as it runs its course in the days ahead.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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