News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Forex Strategy: AUD/USD Bounce To Offer New Entries On Shorts

Forex Strategy: AUD/USD Bounce To Offer New Entries On Shorts

David de Ferranti, Currency Analyst

To receive David’sanalysis directly via email, please sign up here

Talking Points

  • AUD/USD Technical Strategy: Shorts preferred on bounce
  • Bullish engulfing pattern results in recovery for the Aussie
  • Downtrend intact on daily supports overall bearish bias

The Bullish Engulfing candlestick pattern on the hourly chart for the AUD/USD has resulted in a short-term recovery for the pair. However the bulls appear to be struggling to hold onto their grip on the Aussie around 0.8920/0.8930 as sellers appear to be restraining further gains.

A spike in volatility is easily visible on the hourly chart today following the March rate decision from the RBA. However, there remains an absence of a notable key reversal pattern that could warn of fresh declines on the shorter-time frames. This is in contrast to the daily chart which is suggesting that a downtrend has emerged and places the longer-term technical bias to the downside. Against this backdrop, intraday bounces may be seen as an opportunity to enter new short positions.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_AUDUSD_Bounce_To_Offer_New_Entries_On_Shorts_body_Picture_5.png, Forex Strategy: AUD/USD Bounce To Offer New Entries On Shorts

Hourly Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde


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.