AUD/USD Aims At 0.9200 With Bullish Reversal Signal Missing
- AUD/USD Technical Strategy: Shorts Preferred
- Bearish Engulfing pattern on the daily remains the dominant pattern
- Key resistance at 0.9300, Support at 0.9200/10 in intraday trade
The Bearish Engulfing pattern noted in recent candlestick’s reports continues to deliver declines for the Australian Dollar. While prices are edging closer to key support near 0.9200/10, we’re yet to see a bullish signal emerge that could herald a bounce, which leaves shorts preferred.
AUD/USD: Bearish Engulfing Pattern Dominates
Daily Chart - Created Using FXCM Marketscope 2.0
A Bearish Engulfing pattern in intraday trade helped foreshadow the weakness ahead for the Aussie. While we’ve seen a Hammer formation emerge on the four hour chart (below), it has yet to receive confirmation, which leaves us lacking a sign that the bulls may be looking to stage a return.
AUD/USD: Hammer Fails To Reinvigorate The Bulls
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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