AUD/USD Break May Unleash Wave Of Selling Amid Void of Bullish Candles
- AUD/USD Technical Strategy: Shorts Preferred
- Absence of Reversal Patterns Suggests Declines To Continue
- Breakout Of Narrow Trading Band Opens A Knock On 0.9130
AUD/USD has finally cracked the 0.9210 barrier and is threatening further declines amid a void of reversal candlesticks. Some buying interest may be renewed at former resistance-turned-support near 0.9130, with an eventual target offered by the 0.8990/0.9000 floor.
AUD/USD: Breakout Leaves Void Of Bullish Reversal Signals
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar narrative to the daily with an absence of major reversal signals suggesting the pair may encounter further pressure. Given the context afforded by the daily a corrective bounce would be taken as an opportunity to enter new short positions.
AUD/USD: Lack Of Reversal Signals Casts Doubt On An Intraday Bounce
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.