Talking Points
- AUD/USD Technical Strategy: Pending Short
- Make-Or-Break Moment Ahead On Test Of Range-Bottom
- Lack of Reversal Signals Casts Doubt On A Recovery
The Australian Dollar has resumed its descent in recent trading with an absence of bullish reversal signals casting doubt on the potential for a recovery. This sets the Aussie up for a make-or-break moment as it drifts towards its range-bottom at 0.9210. A daily close below the nearby barrier would pave the way for a sustained decline to the 0.8990 mark.
AUD/USD: Test of 0.9210 To Offer Make-Or-Break Moment
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals an intraday recovery and the emergence of a Bullish Engulfing formation. However, the candlestick formation lacks confirmation at this stage suggesting a bounce may be unlikely. Sellers may renew pressure on the pair at the nearby 0.9280 ceiling.
AUD/USD: Struggling To Regain Lost Ground
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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