AUD/USD Hammer Offers Bullish Signal Near Critical 0.9300 Handle
- AUD/USD Technical Strategy: Shorts Preferred
- Hammer formation signals potential for further recovery
- Key resistance at 0.9300, Support at 0.9200/10 in intraday trade
The Aussie Dollar bulls have returned following a test of critical support near 0.9210. The recovery has prompted the emergence of a Hammer formation on the daily. While considered a bullish reversal signal, notable resistance looms nearby at the 0.9300 handle, which suggests it may be too early to call for a more significant bounce. This leaves shorts preferred at this stage.
It should be noted that significant US economic events over the remainder of the week could spark volatility for US Dollar pairs and potential breaks of key support and resistance levels.
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly, on the four hour chart a Hammer formation has heralded the return of the bulls. However, again we need to see 0.9300 cleared before suggesting the potential for an extended advance.
AUD/USD: Hammer Receives Confirmation – Heralding Return of The Bulls
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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