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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • BoJ Kuroda: Important to keep entire yield curve low after virus Excessively low super long yields hurt life insurers - BBG $JPY #BOJ
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/hdHwCAzVG0
  • Japanese Prime Minister Suga says infection rates are still high following emergency declaration - BBG
  • 🇳🇱 Unemployment Rate (DEC) Actual: 3.9% Previous: 4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇳🇱 Consumer Confidence (JAN) Actual: -19 Previous: -20.0 https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇳🇱 Unemployment Rate (DEC) Actual: 3.9 Previous: 4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 70.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/e6YUDJEZ1A
  • Germany's Covid death toll rises above 50,000 - BBG
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.49% 🇦🇺AUD: 0.33% 🇬🇧GBP: 0.21% 🇯🇵JPY: 0.13% 🇨🇦CAD: 0.13% 🇨🇭CHF: 0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/1UDJQe7C0f
  • Heads Up:🇳🇱 Consumer Confidence (JAN) due at 05:30 GMT (15min) Previous: -20.0 https://www.dailyfx.com/economic-calendar#2021-01-21
Forex Strategy: AUD/USD Bulls Lose Grip As Bearish Reversal Pattern Forms

Forex Strategy: AUD/USD Bulls Lose Grip As Bearish Reversal Pattern Forms

David de Ferranti, Currency Analyst

Talking Points

  • AUD/USD Technical Strategy: sidelines preferred
  • Bearish reversal signal emerges on daily, but awaits confirmation
  • Bearish Engulfing pattern near key 0.9300 handle warns of declines

The Australian Dollar has come under selling pressure in recent trading following the formation of a Shooting Star candlestick on the daily chart (below). While considered a bearish reversal signal, the pattern needs to see confirmation from the close of a successive down period before being validated. Buyers may look to keep prices supported around former resistance at 0.9210.

AUD/USD: Rally Stalls As Shooting Star Forms

Forex-Strategy-AUDUSD-Bulls-Lose-Grip-As-Bearish-Reversal-Pattern-Forms_body_Picture_2.png, Forex Strategy: AUD/USD Bulls Lose Grip As Bearish Reversal Pattern Forms

Daily Chart - Created Using FXCM Marketscope 2.0

Similarly a look at intraday price action on the four hour chart highlights warning signs of a potential decline for the AUD/USD. The Bearish Engulfing candlestick pattern near 0.9300 suggests the bulls may have lost their grip on prices. A break below support at 0.9210 may open up further falls back towards former resistance at the 0.9130 mark.

AUD/USD: Bears Wrestle Control of The Aussie In Intraday Trade

Forex-Strategy-AUDUSD-Bulls-Lose-Grip-As-Bearish-Reversal-Pattern-Forms_body_Picture_1.png, Forex Strategy: AUD/USD Bulls Lose Grip As Bearish Reversal Pattern Forms

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.

DISCLOSURES