AUD/USD Awaits Breach Of 0.8200 Barrier To Recast Risks Lower
- Strategy: Short Pending On Daily Close Below 0.8190
- Gravestone Doji Suggests Fading Negative Momentum
- Awaiting Breach Of Buying Support To Recast Risks Lower
AUD/USD achieved the downside target offered in the most recent candlestick reports. A Gravestone Doji has now emerged near the 0.8200 handle suggesting downside momentum may be slowing. Yet the prospect of a sustained recovery is questionable in the absence of more definitive reversal signals. A break below the nearby barrier would potentially open run on the May ’10 low near 0.8070.
Traders should note the upcoming FOMC Decision offers substantial fundamental event risk that may negate technical signals offered.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar story to the daily with a Doji and general sideways drift evident. This suggests a break below intraday support near 0.8200 may be required to see negative momentum renewed.
AUD/USD: Awaits Breach Of Buying Support To Turn Risks Lower
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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