AUD/USD Reversal Pattern Forming Shy of Key Resistance
- AUD/USD Technical Strategy: Shorts Preferred
- Bearish Engulfingpattern forming in intraday trade
- Range between 0.9210 and 0.9440 remains in force
The Australian Dollar remains at a critical juncture near its range-top with the bulls seemingly unwilling to relinquish their grip on prices. A slightpullback from key resistance at 0.9440 yielded a Bearish Engulfing candlestick pattern on the daily. However, the formation has failed to receive confirmation from a second successive down-day which casts doubt on the possibility of a pullback to support at 0.9210 at this stage.
AUD/USD: At A Crossroads Near Range-Top
Daily Chart - Created Using FXCM Marketscope 2.0
Examining intraday price action; several Doji candlesticks on the four hour chart, suggested some hesitation from traders ahead of the 0.9440 mark. While a Bearish Engulfingpattern appears to emerging near the key resistance level, the second handle has yet to close to confirm the reversal signal. An intraday drop is likely to be met by buying support at the psychologically-significant 0.9400 handle.
AUD/USD: Bearish Engulfing Pattern Forming Near Critical Level
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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