AUD/USD Traders In Suspense Following Bearish Reversal Signal
- AUD/USD Technical Strategy: Shorts Preferred
- Bearish Engulfing pattern on the daily offers warning
- Key resistance remains at 0.9440, support at 0.9330
A Bearish Engulfing candlestick pattern on the AUD/USD daily chart continues to hint at a correction for the pair. A pullback is likely to be met by buying support at the psychologically-significant 0.9300 handle. At first glance, the setup appears promising for shorts, however traders should be mindful that the uptrend remains intact and a similar reversal signal back in April failed to elicit a bearish reaction.
Daily Chart - Created Using FXCM Marketscope 2.0
The Bullish Engulfing pattern on the four hour chart has failed to elicit a significant bounce for the Aussie. Coupled with the context provided by the daily this may spell the potential for some weakness in the session ahead with buyers likely to emerge at the 0.9330 mark.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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