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Forex Strategy - AUD/USD Bounce May Offer New Short Entries

Forex Strategy - AUD/USD Bounce May Offer New Short Entries

2014-03-11 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • AUD/USD Technical Strategy: Looking for shorts on bounce
  • 0.9085 mark remains key resistance level (see daily chart)
  • Inverted Hammer Formation hints at a possible bounce

As noted in yesterday’s candlesticks report the Dark Cloud Cover formation on the four hour chart had hinted at declines for the AUD/USD. Following the fall back below the 0.9100 handle buyers have emerged at the 50% Fib Retracement level near 0.9010.

With an Inverted Hammer candle now having formed, there is a hint at an upside bounce for the Aussie. However, with significant resistance looming at the 0.9085 mark on the daily, a bounce would be seen as an opportunity to enter new short positions. A break below 0.9010 would open up the psychologically significant 0.8900 handle.

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

Forex_Strategy_-_AUDUSD_Bounce_May_Offer_New_Short_Entries_body_Picture_2.png, Forex Strategy - AUD/USD Bounce May Offer New Short Entries

4 Hour Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_AUDUSD_Bounce_May_Offer_New_Short_Entries_body_Picture_1.png, Forex Strategy - AUD/USD Bounce May Offer New Short Entries

Daily 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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