AUD/USD Bounce May Prove Limited As Bearish Signals Dominate
- AUD/USD Technical Strategy: Shorts Preferred
- Bearish Engulfing pattern on the daily remains the dominant pattern
- Key resistance at 0.9300, Support at 0.9250 in intraday trade
The Bearish Engulfing pattern noted in the most recent candlestick’s report delivered a drop in the AUD/USD as anticipated. While there are signs of a potential bounce on both the daily and four hour chart, we need to clear the psychologically significant 0.9300 handle broken before suggesting a bullish bias for the Australian dollar.
AUD/USD: Morning Star Awaits Close Of 3rd Candle
Daily Chart - Created Using FXCM Marketscope 2.0
The Bullish Engulfing pattern on the four hour chart has prompted an intraday bounce for the Aussie, however the 0.9300 handle remains a critical resistance level, which may act to restrain further gains during the session ahead. If a bearish reversal signal emerges it would be seen as an opportunity to adopt new short positions with an immediate target offered by support at 0.9250.
AUD/USD: Bullish Engulfing Pattern Suggests Buying Support at 0.9250
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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