Tanalys

AUD/USD Close Below Key Barrier Denies Bullish Pattern Validation

Talking Points

The AUD/USD witnessed a suspenseful session on Monday as it probed above the key 0.8660 barrier in intraday trade. However, the daily close below the ceiling has left a Bullish Engulfing formation lacking confirmation. This leaves shorts preferred with a spotlight on the July 2010 low near 0.8320 as a potential target.

AUD/USD: Bullish Reversal Signal Denied Confirmation

Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart revealed signs of exhaustion from traders in the form of a Doji candlestick near 0.8680. With bullish reversal patterns lacking the pair may be set to continue its descent towards the 0.8550 floor.

AUD/USD: Doji Signaled Intraday Exhaustion At 0.8680

4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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