Forex Strategy - AUD/USD Inverted Hammer Hints At Bounce To 0.9085
- AUD/USD Technical Strategy: Shorts preferred
- 0.9085 mark remains key resistance level (see daily chart)
- Intraday bounce may offer new selling opportunities
The AUD/USD is hinting at an intraday bounce in light of the Inverted Hammer candlestick formation on the four hour chart near the key 0.9000 handle. However, follow-through to the upside may be limited here given the strong resistance present at the 0.9085 mark (see daily chart). As such a rally for the Aussie would be seen as an opportunity to enter new short positions.
AUD/USD: Buyers Emerge At 0.9000
4 Hour Chart - Created Using FXCM Marketscope 2.0
It should also be noted that the recent recovery for the Aussie has resulted in a Hammer candlestick formation on the daily chart. While technically a bullish reversal signal, 0.9085 would need to be cleared before looking at buying the AUD/USD.
AUD/USD: Hammer May See Little Follow-Through
Daily Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.