AUD/USD Close Below Key Barrier Denies Bullish Pattern Validation
- Strategy: Short, Stop: 0.8660 (Close), Target: 0.8330
- Bullish Engulfing Formation Denied Confirmation
- Doji On H4 Signaled Bulls’ Intraday Exhaustion
The AUD/USD witnessed a suspenseful session on Monday as it probed above the key 0.8660 barrier in intraday trade. However, the daily close below the ceiling has left a Bullish Engulfing formation lacking confirmation. This leaves shorts preferred with a spotlight on the July 2010 low near 0.8320 as a potential target.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart revealed signs of exhaustion from traders in the form of a Doji candlestick near 0.8680. With bullish reversal patterns lacking the pair may be set to continue its descent towards the 0.8550 floor.
AUD/USD: Doji Signaled Intraday Exhaustion At 0.8680
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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