Forex Strategy: AUD/USD Struggles As 0.9300 Handle Caps Gains
- 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 continues to flounder as sellers keep the currency contained below the 0.9300 handle. While a Shooting Star formation had hinted at a potential reversal, it failed to receive confirmation from a successive down day, which casts doubt over a potential correction. 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. If the bears manage to take hold of prices and push the AUD/USD below support at 0.9210, it may open up further falls back towards 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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