AUD/USD Eyes 0.8660 Floor With Bullish Reversal Signals Lacking
- AUD/USD Technical Strategy: Shorts Preferred
- Absence Of Bullish Signals Casts Immediate Risks Lower
- H4 Offered Early Warning In The Form of An Evening Star
AUD/USD has resumed its descent with a void of bullish candlestick reversal patterns leaving a revisit of the 0.8660 floor on the cards. However, traders should note a sizeable weekend gap has been left in its wake, which may be filled before the journey lower continues. Shorts remain preferred with a daily close above the 0.8885 ceiling required to negate a bearish technical bias.
AUD/USD: Eyes On 0.8660 Amid Void Of Bullish Reversal Signals
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early warning sign of an intraday retreat for the Aussie. An Evening Star formation suggested the bears were preparing an assault on the pair. With bullish signals now seemingly lacking a recovery over the session ahead is questionable. A break below intraday support at 0.8735 would be required to open the next leg lower to 0.8660.
AUD/USD: Evening Star Offered An Early Warning For A Pullback
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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