Forex Strategy: AUD/USD Bearish Engulfing Pattern Prefers Shorts
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- AUD/USD Technical Strategy: Shorts preferred
- Bearish Engulfing pattern on the four hour gives bearish bias
- 0.8990 acting as strong resistance in intraday trade
The Aussie has come under selling pressure following a test of key resistance at the 0.8990 mark (which also coincides with the 61.8% Fib Retracement level). A Bearish Engulfing candlestick formation on the hourly chart is warning of further declines ahead for the currency with buyers likely to emerge at 0.8940.
The four hour chart reveals the presence of consolidation for the AUD/USD between 0.9065 and 0.8920. With the pair failing to reclaim previous highs and in the absence of a bullish reversal signal the downside is preferred.
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Hourly 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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