Talking Points
- AUD/USD Technical Strategy: Sidelines Preferred
- Long upper wick signals doubt amongst the bulls at resistance
- Bullish Engulfingpattern hints intraday gains
The Australian Dollar continues to consolidate within the 0.9320 to 0.9440 range with little in the way of clear candlestick signals to suggest a directional bias. While a long upper wick above 0.9440 on one of the daily candles suggests hesitation from the bulls it is insufficient to suggest a bearish reversal.
AUD/USD: Bulls Lose Steam Near Key Resistance
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Taking a look at a shorter timeframe; a Bullish Engulfing pattern on the four hour chart is hinting at a push higher the Aussie over the session ahead. However, some skepticism may be warranted given the context afforded by the daily and the close proximity to 0.9440.
AUD/USD: Bullish Pattern Hints At Aussie Strength In Session Ahead
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
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.
