AUD/USD At Critical Juncture Sub 0.9300 Handle
- AUD/USD Technical Strategy: Shorts Preferred
- Hammer formation requires clearance of 0.9300 to receive confirmation
- Intraday chart demonstrates importance of nearby resistance
The Aussie is teasing traders near the critical 0.9300 handle after prices bounced off support near 0.9210, which resulted in a Hammer formation on the daily. While considered a reversal formation, we likely need to clear 0.9300 before the bulls look to firm their grip on prices.
Traders should be mindful of the potential for a surprise US Non-Farm Payrolls reading in the coming hours to spark significant volatility for US Dollar based pairs. The release of the figures will be covered live in DailyFX Plus.
Daily Chart - Created Using FXCM Marketscope 2.0
The significance of the 0.9300 handle is made further evident by an examination of intraday price action, with several long wicks forming near the critical level. A Bearish Engulfing formation suggests sellers are still intent on keeping pressure on the currency.
AUD/USD: Coiled Like Spring Below 0.9300
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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