AUD/USD Hammer Emerges As Bears Lose Steam Near Key Support
- AUD/USD Technical Strategy: Sidelines Preferred
- Hammer suggests bears have run out of steam
- Morning Star in intraday trade hints at recovery to 0.9300
Signs of a potential bounce have emerged for the Australian Dollar with a Hammer candlestick forming near notable support at 0.9210. While the signal suggests the bears have retreated for now, the formation awaits confirmation from a successive up-day to provide validation. With noteworthy resistance hanging overhead at the 93 US cent handle, a recovery would be seen as an opportunity to enter new short positions.
AUD/USD: Hammer Hints At A Bounce Following Push Off Support
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly, on the four hour chart a Morning Star pattern signals a return of the bulls near support at 0.9210/13. As noted above, sellers are likely sitting at the 0.9300 handle, which may afford the Aussie limited upside follow-through.
AUD/USD: Morning Star Signals Return Of The Bulls
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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