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Talking Points
- AUD/USD Technical Strategy: Looking for confirmation at critical juncture
- 0.9085 mark remains key resistance level (see daily chart)
- Dark Cloud Cover on four hour chart may be warning of declines
The AUD/USD is at a critical juncture this week as it trades shy of the key 0.9085 mark. While there have been threats of an upside breakout during intraday trade, the daily has failed to convincingly close above the critical level of resistance, warning that the bulls may be losing their spirit.
A Dark Cloud Cover candlestick pattern on the 4 hour chart may be warning of further declines which may see buyers emerge at the 50% retracement level at 0.9010. However, while signs of an uptrend remain on the daily it is too soon to suggest a bearish reversal without more meaningful confirmation.
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4 Hour Chart – Created Using FXCM Marketscope 2.0
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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