Forex Strategy - AUD/USD Bounce May Offer New Short Entries
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- 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.
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4 Hour Chart - Created Using FXCM Marketscope 2.0
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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