Forex Strategy: AUD/USD Shorts Preferred On Hammer Confirmation
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- AUD/USD Technical Strategy: Shorts favored on Hammer confirmation
- Sellers have emerged again shy of the 0.9085 level
- Immediate target for a decline is nearby support at 0.8920
The AUD/USD has managed to recover back to resistance at 0.9065 following the Inverted Hammer which suggested buyers were returning to the pair. However, with the 0.9065 level acting as noteworthy resistance selling pressure may act to restrain further gains for the Aussie.
A Hammer candlestick pattern on the four hour chart is hinting that prices could reverse lower with a potential target offered by support at 0.8920. As is normal practice, we need to wait for confirmation before acting on a reversal signal. This may come in the form of follow-through from a successive down period.
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Four Hour Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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