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.
AUD/USD: Bearish Engulfing Pattern Warns Of Intraday Retreat
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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