AUD/USD Key Reversal Pattern Leaves Traders In Suspense Near 0.9300
- 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 is teasing traders near the critical 0.9300 handle following a return of the bulls near 0.9210. While we’ve seen a Hammer formation emerge on the daily, we need to clear 0.9300 to make a bullish reversal possible.
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly, on the four hour chart several Hammer candlesticks suggest that the Australian Dollar bulls remain intent on wrestling control of price action from the bears. However, the significance of the 0.9300 level is made further evident by an examination of intraday price action, with several long wicks forming near the critical level.
AUD/USD: Coiled Like Spring Below 0.9300
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
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.