AUD/USD Teeters On The Brink of A Correction Following Reversal Signal
- AUD/USD Technical Strategy: Shorts Preferred
- Shooting Star and Bearish Engulfing patterns offer warnings
- Key resistance remains at 0.9440, support at 0.9330
The Australian Dollar is teetering on the brink of a correction following the formation of a Shooting Star pattern near key resistance at 0.9440. The bearish reversal signal has received confirmation form a successive down period, which suggests a potential dip to support at 0.9300. While on first glance, the setup appears promising, traders should be mindful that the uptrend remains intact and a similar signal back in April failed to elicit a bearish reaction.
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 aBearish Engulfing pattern having emerged. Intraday support for the pair likely rests near the 0.9330/40 mark.
AUD/USD: Bearish Engulfing Signal Offers A Further Warning
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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