Forex Strategy: AUD/USD Doji Signals Hesitation Amongst The Bears
- AUD/USD Technical Strategy: sidelines preferred
- Bearish reversal signal emerges on daily but fails to receive confirmation
- Doji in intraday trade suggests bulls prepared to support prices near 0.9210
The Australian Dollar has come under selling pressure in recent trading following the formation of a Shooting Star candlestick on the daily chart (below). While considered a bearish reversal signal, the pattern failed to receive confirmation from a successive down-period calling the potential for further declines into question. Buyers may look to keep prices supported around former resistance at 0.9210.
AUD/USD: Rally Stalls As Shooting Star Forms
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly a look at intraday price action suggests that the potential for downside follow-through is limited at this stage. Strong buying support around 0.9210/3 has prompted the formation of a Doji candlestick signaling the bears are hesitant to push prices lower. A break below support at 0.9210 may open up further falls back towards former resistance at the 0.9130 mark.
AUD/USD: Bears Hesitant Near 0.9210
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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