AUD/USD Candlestick Analysis: Candle Setup Hints at Bounce
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- AUD/USD Strategy: Flat
- Candle Setup Hints at Aussie Rebound
- Dominant Trend Still Looks Bearish
The Australian Dollar may be carving out an interim bottom against its counterpart, marked by the appearance of a bullish Morning Star candlestick pattern. A break above falling channel resistance at 0.7800 exposes the 23.6% Fibonacci retracement at 0.7998. Alternatively, a move below the intersection of channel floor support and the 23.6% Fib expansion at 0.7478 targets the 38.2% threshold at 0.7194.
The dominant AUD/USD trend looks to still favor the downside. With that in mind, any on-coming gains are likely to be corrective and represent a future selling opportunity rather than a trade-able advance.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.