Talking Points
- AUD/USD Technical Strategy: Shorts Preferred
- Bullish Engulfing Formation Awaiting Confirmation
- Looking At H4 Chart For Intraday Signs Of Exhaustion
AUD/USD faces a critical session as it probes above the 0.8660 mark with a Bullish Engulfing formation in its wake. Confirmation of the signal from a close above the barrier would suggest the potential for a further recovery towards the 0.8885 ceiling. However, recent similar reversal signals have found limited follow-through, casting some doubt on the potential for a sustained advance. Until the key level is breached on a daily close basis, shorts remain preferred.
AUD/USD: Bullish Reversal Signal Awaits Confirmation
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early hint at a bounce as denoted by a Bullish Engulfing formation. At this stage bearish reversal signals appear lacking. Yet given the context afforded by the daily, the intraday timeframe should be monitored closely for signs of exhaustion from the bulls.
AUD/USD: Bullish Engulfing Formation Offered Early Hint At A Bounce
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.