AUD/USD Downside Risks Remain With Bullish Reversal Patterns Lacking
- Strategy: Short (From 0.8530), Stop: 0.8540 (Daily Close), Target: 0.8330
- Bullish Reversal Signals Lacking On The Daily & H4
- Slide Below The 0.8540 Floor May Open 0.8320
AUD/USD has pushed into waters not witnessed since 2010 with an absence of bullish reversal patterns opening the prospect of further declines. This has created a fresh opportunity for short positioning with a downside target offered by the July ’10 low near 0.8320.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a less bearish picture than the daily with a Doji suggesting reluctance from the bears. Yet with more definitive reversal signals lacking the potential for a corrective bounce appears limited at this stage.
AUD/USD: Lacking Bullish Reversal Signals In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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