The Ozzie Dollar Probes Above 0.8660

AUD/USD (0.8670)

The AUD/USD is entering a key trading day. Here is what is going on, refer to the above daily MT 4 chart for now. We have a bullish engulfing candlestick which has led to a bounce higher. We are now trading just above the key technical barrier of 0.8660. We will confirm this bullish reversal with a daily close above 0.8660. If this happens buyers will then target 0.8880/0.8885 congestion area.

Now, we have seen similar reversal patterns attempt to emerge and fail. This lends me to believe this recovery does not have the legs and I am not all that convinced. We need a close above 0.8660 for me to change my bias.

Let’s look at the 4 hour MT 4 chart below for some more insights into today’s trading pattern. Here we clearly see the bullish engulfing candlestick. We also do not see any bearish reversal signs yet. However, with the recent history of failure when trying to correct higher, one should be cautious and monitor the 4 and 1 hour charts for any signs of buyers hesitating.