Forex Strategy: AUD/USD Short Pending On Evening Star Confirmation

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Talking Points

  • AUD/USD Technical Strategy: Pending short favored on Evening Star confirmation

  • Sellers emerged shy of the 0.9085 level (high for 2014) as suggested

  • Continued declined may eventually find buying support at the 0.8850 mark

Following a period of extended gains for the AUD/USD signs of a more meaningful reversal lower have emerged. This comes with an Evening Star candlestick pattern forming on the daily. The move lower for the pair comes following an emergence of selling pressure just shy of the 0.9085 level as suggested in yesterday’s candlestick report.

Confirmation of the Evening Star pattern from a second down day is required before offering bearish technical bias for the Aussie. A continued reversal may eventually prompt buying support around the critical 0.8850 mark.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_AUDUSD_Short_Pending_On_Evening_Star_Confirmation_body_Picture_1.png, Forex Strategy: AUD/USD Short Pending On Evening Star Confirmation
Forex_Strategy_AUDUSD_Short_Pending_On_Evening_Star_Confirmation_body_Picture_1.png, Forex Strategy: AUD/USD Short Pending On Evening Star Confirmation

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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