AUD/USD Candlestick Analysis: Aussie Recovery Under Way?
To receive Ilya's analysis directly via email, please SIGN UP HERE
AUD/USD Strategy: Flat
Aussie Tries to Make Good on Bull Signal
Upswing to Yield Short Trade Opportunity
The Australian Dollar is trying to make good on upside reversal cues established by the formation of a bullish Morning Star candlestick pattern. Breaking channel top resistance at 0.7806 initially exposes the 23.6% Fibonacci retracement at 0.7998. Alternatively, a reversal below the intersection of channel floor support and the 23.6% Fib expansion at 0.7478 targets the 38.2% threshold at 0.7194.
The overall AUD/USD trend continues to look bearish. With that in mind, we will treat any further gains as corrective and look to them as an opportunity to establish a short position at more attractive levels once the upswing is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com