AUD/USD Retreat Sees Bearish Reversal Signal Emerge
- Strategy: Flat
- Bearish Engulfing Pattern Awaits Confirmation
- Short Body Candles On H4 Suggest Indecision
AUD/USD’s most recent pullback has left a Bearish Engulfing formation in its wake. Yet the key reversal pattern awaits confirmation from a successive down-session open the prospect of a more sustained push lower. A slide back under 0.8660 would return the risks to the recent lows near 0.8540.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Short body candles on the four hour chart are suggestive of indecision from traders during the session thus far. This leaves clear directional signals from candlesticks lacking and a more constructive setup desired.
AUD/USD: Intraday Trade Offers Void Of Clear Candlestick Signals
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
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.