Two Days ago the AUDUSD complete an Evening Star candlestick pattern, and all indications were that the pair was likely to go lower again to retest the $0.8870 level. Somehow the strong indications from two days ago has somehow disperse, and as today the currency is complete in not ones territory. It could either go up or down.
Evening Start Candlestick Pattern
The Evening start candlestick pattern is considered a reversal signal, specially when is at the top of an uptrend. The Evening Start currently present in the chart, is precisely at the top but not of a long and strong rally. Therefore, it can’t be really read as strong bearish signal.
Long and Short Levels
Levels to watch out for are the $0.91035 for (CFDs) short traders and the $0.9204 for long traders.
• A break below $0.91035 could indicate weakness and a possible retest of the bottom looking for support. Short traders could take advantage of it.
• A break above $0.9204 could indicate that the currency is looking to rebound but the long term view of the currency is to remain under pressure at current level. A bounce towards higher level could be short lived.
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