Forex Strategy: AUD/USD Bullish Engulfing Pattern Suggests Bounce
To receive David’sanalysis directly via email, please sign up here
- AUD/USD Technical Strategy: Shorts preferred on bounce
- Bullish engulfing pattern hinting at a short-term recovery
- Downtrend intact on daily supports overall bearish bias
The Bearish Engulfing pattern noted in the last AUD/USD candlesticks report has resulted in continued declines for the pair. The bulls appear to be prepared to offer support at 0.8890 in intraday trade with a Bullish Engulfing pattern on the hourly hinting at a short-term bounce.
However given a downtrend on the daily timeframe, a strengthening of the Aussie would be seen as an opportunity to enter new short positions. The 23.6% Fib Retracement level pictured below is likely to offer some resistance.
It is also noteworthy that the upcoming RBA rate decision is likely to create intraday volatility for the AUD/USD. You can check the calendar here to view upcoming event risk for the week.
Confirm your chart-based trade setups with the Technical Analyzer.
Hourly Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
New to FX? START HERE
For live market updates, visit the Real Time News Feed
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.