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.



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
Oil - US Crude
Wall Street
More View more
Real Time News
  • The Hang Seng Index looks set to extend gains beyond the 30,000 mark, hitting a fresh 20-month high. Will it succeed?
  • The US Dollar may be finding a turning point against ASEAN currencies as smaller fiscal stimulus bets, soft earnings risk and Covid cases translate into some capital flight from equities. Get your #ASEAN currencies market update from @ddubrovskyFX here:
  • RT @FxWestwater: Australian Dollar Forecast: Jobs Report Fails to Inspire $AUDUSD Link:
  • The Nasdaq 100 index advanced 1.97% to an all-time high of 13,457, led by Alphabet (+5.36%), Amazon (+4.57%) and Microsoft (+3.65%).
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6% Expected: 6.7% Previous: 6.8%
  • 🇦🇺 Full Time Employment Chg (DEC) Actual: 35.7K Previous: 84.2K
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6 Expected: 6.7% Previous: 6.8%
  • 🇦🇺 Employment Change (DEC) Actual: 50K Expected: 50K Previous: 90.0K
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Heads Up:🇦🇺 Full Time Employment Chg (DEC) due at 00:30 GMT (15min) Previous: 84.2K
Forex Strategy: AUD/USD Struggles As Bearish Engulfing Pattern Forms

Forex Strategy: AUD/USD Struggles As Bearish Engulfing Pattern Forms

David de Ferranti, Currency Analyst

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

Talking Points

  • AUD/USD Technical Strategy: Shorts preferred
  • 0.9085 mark remains key resistance level (see daily chart)
  • Bearish Engulfing pattern needs confirmation

A Hammer formation on the four hour chart near 0.8890 helped foreshadow a bounce for the AUD/USD in recent trading. However a Bearish Engulfing candle pattern that is presently emerging at 0.9075 is warning of a correction for the pair. It should be noted that the second candle in the pattern still needs to close and receive confirmation from a successive down period before being validated.

Also noteworthy is the Hammer formation on the daily chart that has resulted from the recent recovery for the Aussie. While technically a bullish reversal signal, significant selling pressure remains at the 0.9085 mark which may cap gains for the currency.

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

Forex_Strategy_-_AUDUSD_Struggles_As_Bearish_Engulfing_Pattern_Forms_body_Picture_2.png, Forex Strategy: AUD/USD Struggles As Bearish Engulfing Pattern Forms

4 Hour Chart - Created Using FXCM Marketscope 2.0

Forex_Strategy_-_AUDUSD_Struggles_As_Bearish_Engulfing_Pattern_Forms_body_Picture_1.png, Forex Strategy: AUD/USD Struggles As Bearish Engulfing Pattern Forms

Daily 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.