Forex Strategy: AUD/USD Harami Near Key Resistance Favors Shorts
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- AUD/USD Technical Strategy: Shorts preferred
- Notable resistance at 0.9000-0.9010 capping gains
- Target for a decline is nearby support at 0.8920
As noted in the most recent candlesticks report; a Dark Cloud cover pattern on the four hour chart was hinting at potential declines ahead for the Aussie. At this stage, the downside remains favored which is supported by the formation of a Harami pattern near the key resistance zone of 0.9000-0.9010, which signals a fading of bullish momentum.
A potential target for shorts is offered by the 0.8920 level which has seen buyers emerge over the past few weeks. A break above 0.9000 would negate a bearish bias and may prompt a follow-through towards the 0.9065 mark.
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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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