Talking Points
- AUD/USD Technical Strategy: Shorts Preferred
- Absence of Reversal Patterns Suggests Declines To Continue
- Breakout Of Narrow Trading Band Opens A Knock On 0.9130
AUD/USD has finally cracked the 0.9210 barrier and is threatening further declines amid a void of reversal candlesticks. Some buying interest may be renewed at former resistance-turned-support near 0.9130, with an eventual target offered by the 0.8990/0.9000 floor.
AUD/USD: Breakout Leaves Void Of Bullish Reversal Signals
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar narrative to the daily with an absence of major reversal signals suggesting the pair may encounter further pressure. Given the context afforded by the daily a corrective bounce would be taken as an opportunity to enter new short positions.
AUD/USD: Lack Of Reversal Signals Casts Doubt On An Intraday Bounce
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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