AUDUSD: Bounce Sought to Yield Short Entry
Strategy: Pending Short
AUDUSD has broken sharply through support at a rising trend line set from mid-January to find support at 0.9803, the 1/12 low. While we will not know what the currently active candle will look like by the close at 21:00 GMT, we note the early makings of a Dragonfly Doji, which may signal a corrective rebound over the near term before sellers overtake momentum in earnest. We will look for a bounce toward resistance at 0.9943 over the coming days to produce a selling opportunity. Alternatively, a daily close below 0.9803 would similarly give the green light to enter short (provided risk/reward conditions are acceptable).
To discuss these strategies with other traders, please visit the Candlestick Forum
To receive future articles by email, please contact Ilya at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.