Forex Strategy: AUD/USD Bulls Continue Charge Towards 0.9340 Mark
- AUD/USD Technical Strategy: longs preferred following breakout
- Bearish reversal signal remains absent on the daily suggesting gains to continue
- Response to Dark Cloud Cover on the four hour chart may be limited
The Australian Dollar has pushed above the key 0.9160 resistance level in recent trading. While a Bearish Engulfing formation on the daily had warned of declines for the Aussie, it failed to receive confirmation from a successive session of declines. With a key reversal candlestick pattern now absent on the daily, the AUD/USD may advance on 0.9340 (61.8% Fib Retracement Level) following the breakout above 0.9200.
AUD/USD: Break above 0.9200 May Open 0.9340
Daily Chart - Created Using FXCM Marketscope 2.0
A Dark Cloud Cover candlestick pattern has formed on the four hour chart, suggesting some hesitation amongst the bulls in intraday trade. However, the pattern has received little follow-through suggesting that the probability of a bearish reversal is low, particularly given the context provided by the daily chart.
AUD/USD: Dark Cloud Cover Weighs on the Aussie in Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.