Wednesday, October 29, 2014

AUD/USD Risks Return To Range-Bottom As Reversal Pattern Emerges




Talking Points



  • AUD/USD Technical Strategy: Shorts Preferred


  • Bearish Candlestick Pattern Casts Risk Lower


  • Shooting Star Offered Early Warning Of A Pullback


AUD/USD may face further declines with a Bearish Engulfing formation awaiting confirmation on the daily. A successive down session would help validate the signal and suggest a retreat to the pair’s range-bottom near 0.8660. This leaves shorts preferred with a daily close above the 0.8885 ceiling required to negate a bearish technical bias.



AUD/USD: Reversal Signal Emerges At 0.8885 Barrier


AUD/USD Risks Return To Range-Bottom As Reversal Pattern Emerges


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



The four hour chart offered an early warning signal of a pullback for the Aussie in the form of a Shooting Star pattern. With bullish reversal formations lacking the pair may be set for further declines. Buying interest may be renewed at intraday support near the 0.8735 mark.



AUD/USD: Shooting Star Offered Warning Sign Near Range-Top


AUD/USD Risks Return To Range-Bottom As Reversal Pattern Emerges


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



By David de Ferranti, Currency Analyst, DailyFX



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AUD/USD Risks Return To Range-Bottom As Reversal Pattern Emerges

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