- AUD/USD Technical Strategy: Shorts Preferred
- Shooting Star and Bearish Engulfing patterns offer warnings
- Key resistance remains at 0.9440
The Australian Dollar is giving back ground following a failed break above a key resistance level at 0.9440. The pullback in the commodity currency has resulted in the formation of a Shooting Star candlestick, which offers an ominous warning of a potential decline to support at 0.9300.
AUD/USD: Shooting Star Puts Brakes On Advance
Daily Chart - Created Using FXCM Marketscope 2.0
A look at intraday price action on the four hour chart gives further cause for concern with a Bearish Engulfing pattern having emerged. Intraday support for the pair likely rests near the 0.9330/40 mark.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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