AUD/USD At A Critical Juncture Near Range-Top
- AUD/USD Technical Strategy: Sidelines Preferred
- Hesitation evident at 0.9440, near 2014 high
- Range between 0.9210 and 0.9440 remains in force
AUD/USD traders remain hesitant to push the pair higher as the currency travels shy of its range top at 0.9440. A Bullish Engulfing pattern highlights that the bears may have loosened their grip on prices, which afforded the Aussie a recovery. A daily close above 0.9440 would signal enough conviction amongst traders to lead the pair higher and would open up the next definitive level at 0.9540.
Daily Chart - Created Using FXCM Marketscope 2.0
Examining intraday price action, a Doji pattern appears to be forming on the four hour chart, which gives further evidence of indecision amongst traders. However, at this stage a key reversal pattern is absent, which casts doubt over the potential for a correction. An intraday dip would likely be met by buying support at the 0.9375 mark.
AUD/USD: Doji Suggests Indecision Near Key Technical Level
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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