AUDUSD: Signs of Reversal Emerge at Parity
Strategy: Pending Short
AUDUSD is showing a Shooting Star candlestick below the parity (1.0000) figure, a psychological hurdle reinforced by resistance in the 0.9894-0.9948 area marked by the 61.8% Fibonacci retracement and the mid-December swing bottom. While compelling, the setup does not offer adequate confirmation of reversal to be actionable. We will wait for a bearish close below the top of a former falling channel top now acting as support (currently at 0.9839) to actively look for selling opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail email@example.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.