Forex Strategy: AUD/USD Continues Gains Post Hammer Formation
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- AUD/USD Technical Strategy: Hammer formation favors continued upside gains
- Sellers may emerge important 0.9085 level which is the high for 2014
- Bearish reversal candlestick formation with follow-through needed before offering a bearish bias
The Aussie has extended its recent gains as it marches towards the 91 US cents handle. The extension higher for the AUD/USD follows a couple of bullish candlestick patterns on the four hour chart including a Piercing Line formation as well as a Hammer.
With a bearish reversal candle pattern seemingly absent, it leaves the bias in favor of continued upside gains. A break above noteworthy resistance at the 2014 high of 0.9085 may open up the December 2013 high of 0.9170. However, if a reversal signal emerges with selling pressure at the 0.9085 mark, a short entry may be provided.
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Four Hour 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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