AUD/USD Hanging Man In Focus As Prices Edge Out Fresh 2014 Highs
- AUD/USD Technical Strategy: Longs Preferred
- Pushabove 0.9300 opensadvance to 0.9440
- Monitoring Hanging Man on four hour chart
The Aussie has staged an upside breakout above the critical 0.9300 handle in recent trading. At this stage a bearish reversal signal is missing on the daily time frame, which suggests the potential for an extended advance towards the next definitive level of resistance at 0.9440.
Daily Chart - Created Using FXCM Marketscope 2.0
A look at intraday price action on the four hour chart reveals that the upside breakout was preceded by a drawn-out struggle between traders between 0.9210 and 0.9300. While the bulls ultimately won out, a Hanging Man formation suggests the bears may be looking to return. However, the reversal signal requires confirmation from an ensuing down-period before being validated.
AUD/USD: Hanging Man Awaits Confirmation
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.