Forex Strategy: AUD/USD Bulls Lose Grip As Bearish Reversal Pattern Forms
- 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
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
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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