AUD/USD Corrective Bounce Or Sustained Recovery?
- AUD/USD Technical Strategy: Shorts Preferred
- Harami Offers Bullish Reversal Signal Near 0.9320
- H4 Demonstrates Absence of Key Bearish Patterns
The Australian Dollar threatens a push towards its range-top near 0.9440 following a Harami formation on the daily. However, some skepticism for a sustained recovery may be warranted by a Doji forming in intraday trade (indicating hesitation by the bulls). This suggests the recent recovery may be little more than a corrective bounce at this point.
AUD/USD: Sustained Recovery Questionable
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart below reveals some hesitation by traders during the Asian session (denoted by a Doji candlestick near 0.9330). However, the pair has yet to see a bearish reversal pattern emerge, which would warn of a correction. Further gains would likely be met by selling pressure at the 0.9360 mark.
AUD/USD: Bulls Hesitate Near 0.9320/0.9330
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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