Strategy: Pending Short
AUDUSD put in a Bearish Engulfing candlestick pattern below resistance at the top of a falling channel set from the late July swing high, hinting the upward correction is complete and sellers are ready to retake the initiative. However, risk/reward considerations argue against taking a short position at present given the proximity of support at 1.0169, the 14.6% Fibonacci retracement level, and we will remain on the sidelines for now.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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