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- AUD/USD Technical Strategy: Shorts preferred on bounce
- Bullish engulfing pattern results in recovery for the Aussie
- Downtrend intact on daily supports overall bearish bias
The Bullish Engulfing candlestick pattern on the hourly chart for the AUD/USD has resulted in a short-term recovery for the pair. However the bulls appear to be struggling to hold onto their grip on the Aussie around 0.8920/0.8930 as sellers appear to be restraining further gains.
A spike in volatility is easily visible on the hourly chart today following the March rate decision from the RBA. However, there remains an absence of a notable key reversal pattern that could warn of fresh declines on the shorter-time frames. This is in contrast to the daily chart which is suggesting that a downtrend has emerged and places the longer-term technical bias to the downside. Against this backdrop, intraday bounces may be seen as an opportunity to enter new short positions.
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Hourly Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
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