AUD/USD Candlesticks Suggest Bulls Lacking Conviction Near Key Level
- AUD/USD Technical Strategy: Sidelines Preferred
- Long upper wick signals doubt amongst the bulls at resistance
- Morning Star pattern hints at a bounce in intraday trade
The Aussie Dollar bulls have seemingly lost steam after failing to breach the critical 0.9440 mark in recent trade. A long upper wick on the daily candle suggests hesitation from traders to push the pair higher. However, at this stage a key reversal pattern remains absent on the daily, which casts doubt over the potential for a correction.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Taking a look at a shorter timeframe; a Bearish Engulfing pattern on the four hour chart warned of intraday weakness for the Aussie. However, a Morning Star formation may shift the tide in the bulls favor over the session ahead. Sellers will likely look to emerge at the 0.9435 mark.
AUD/USD: Bearish Engulfing Pattern Warned Of Intraday Retreat
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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