Forex Strategy: AUD/USD Awaits Confirmation of Bearish Reversal Signal
- AUD/USD Technical Strategy: sidelines preferred
- Dragonfly Doji on the four hour chart resulted in an intraday bounce
- Bearish Engulfing pattern on the daily awaits confirmation
The Bearish Engulfing pattern that has arisen following the AUD/USD’s false break above 0.9085 is warning of further declines for the pair. However, the formation has yet to receive confirmation and against the backdrop of a short-term uptrend caution is suggested when looking at shorts.
AUD/USD: Bearish Signal Awaits Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0
As noted in yesterday’s candlesticks report the Dragonfly Doji on the four hour chart was hinting at a bounce during the session which continues to stand. Expect further gains to be met by some selling pressure at the psychologically significant 0.9100 handle.
AUD/USD: Dragonfly Doji Foreshadowed Intraday Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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