AUD/USD Remains At A Crossroads As Dojis Signal Indecision
- AUD/USD Technical Strategy: Shorts Preferred
- Bearish Engulfing fails to receive confirmation
- Range between 0.9210 and 0.9440 remains in force
The Australian Dollar remains at a critical juncture near its range-top with the bulls seemingly unwilling to relinquish their grip on prices. A slightpullback from key resistance at 0.9440 yielded Bearish Engulfing candlestick pattern on the daily. However, the formation has failed to receive confirmation from a second successive down-day which casts doubt on the possibility of a pullback to 0.9210 at this stage.
AUD/USD: At A Crossroads Near Range-Top
Daily Chart - Created Using FXCM Marketscope 2.0
Examining intraday price action; a Doji candlestick on the four hour chart, suggests some hesitation from traders. However, at this stage a key reversal pattern is absent, which casts doubt over the potential for a pullback. Buyers are likely to emerge at support near 0.9375.
AUD/USD: Doji Suggests Hesitation By Traders
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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