AUD/USD Retreats From 0.9400 With Bearish Reversal Signal In Play
- 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 Shooting Star formation on the daily continues to warn of a potential correction for the Australian Dollar. The currency has struggled near the 0.9440 level of resistance, suggesting the bears may look to take control of prices. While at 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
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.