AUD/USD Bulls Return As Reversal Pattern Emerges
- AUD/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover pattern negated by bounce
- Bullish Engulfing pattern hints at further recovery
As noted in yesterday’s candlesticks report the June FOMC Meeting offered the potential for significant US Dollar volatility. The resulting price action post the meeting has negated the Dark Cloud Cover pattern near the 2014 highs for the Aussie, and resulted in a Bullish Engulfing formation. This suggests the AUD/USD may be primed for a run on its 2014 high near 0.9440.
AUD/USD: Bulls Return As Reversal Pattern Emerges
Daily Chart - Created Using FXCM Marketscope 2.0
A Doji near support at 0.9325 signaled signs of hesitation amongst traders which heralded the push higher for the Aussie. While resistance now looms nearby at 0.9435, we’re yet to see a bearish reversal pattern emerge that would warn of a correction.
AUD/USD: Doji Denoted Hesitation Near Support
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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