AUD/USD Recovery May Prove Limited As Hammer Lacks Confirmation
- AUD/USD Technical Strategy: Sidelines Preferred
- 0.9210 continues to act as support
- Harami on the four hour chart hints at a bounce
The Australian Dollar bulls remain prepared to support the currency at the 0.9210 mark for now. However, with a key reversal candlestick pattern absent on the daily a recovery may be limited. This comes following the Hammer formation failing to receive confirmation from a successive up-day. Sellers are likely sitting at the psychologically-significant 0.9300 handle.
AUD/USD: Support Holds At 0.9210
Daily Chart - Created Using FXCM Marketscope 2.0
A Harami pattern on the four hour chart is hinting at a bounce in intraday trade. However, again a recovery may be capped by selling pressure at the 0.9300 mark.
AUD/USD: Harami Pattern Hints At A Bounce In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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.