AUD/USD Retreats As A Bearish Pattern Forms In Intraday Trade
- AUD/USD Technical Strategy: Sidelines Preferred
- Haramidelivers a recovery to 0.9440 for the Aussie
- Warningoffered by a Shooting Star forming on the daily
The Australian Dollar has been afforded a recovery on the back of a Harami candlestick formation on the daily chart. The key reversal pattern suggested a push back to resistance at 0.9440. However, given the strength of selling pressure at the key level, a breakout may be difficult. With a Shooting Star now forming during the Asian session traders should be wary of the potential for a pullback.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Taking a look at intraday price action; a Bearish Engulfing pattern on the four hour chart warns of weakness for the Aussie over the session ahead. A close of the candle below support at 0.9385 would pave the way for a retreat to 0.9325.
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.