Talking Points
- AUD/USD Technical Strategy: Shorts Preferred
- Bullish Reversal Signal Awaiting Confirmation
- Climb Over 0.9100 Handle May Prove Difficult
The Australian Dollar’s recent rebound has yielded a Morning Star candlestick pattern on the daily. Yet the key reversal formation awaits confirmation from a successive up-day in order to suggest a sustained recovery for the currency. This may prove difficult given heavy selling pressure is evident at the 0.9100 ceiling. A climb over the nearby barrier would be required to suggest a small base and the potential for a retest of the former range-bottom at 92 US cents.
AUD/USD: Reversal Signal Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early indication of a potential bounce for the Aussie. A Morning Star pattern near the 0.9000 floor suggested the bulls were returning in intraday trade. However, a more recent Doji candlestick does little to inspire confidence in a continued recovery for the AUD/USD.
AUD/USD: Doji Highlights Hesitation From Traders Near 0.9100/20 Barrier
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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