AUD/USD Traders Lacking Conviction As Short Body Candles Continue
- AUD/USD Technical Strategy: Sidelines Preferred
- Doji Indicates Bulls Lacking Steam At Nearby Resistance
- Break of Trading Band Needed To Offer Clearer Signals
The Australian Dollar remains trapped in a narrow trading band with an ensemble of short body candlesticks suggesting indecision from traders. A daily close above the former-range-bottom at 0.9330 would open a re-test of the recent highs near 0.9455.
AUD/USD: Doji Suggests Indecision Shy of Nearby Barrier
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offers a more defined picture of the narrow range that has formed for AUD/USD. A Dragonfly Doji near 0.9355 offered an early indication of a pullback to the 0.9280 floor. With an Inverted Hammer now in its wake a recovery may be on the cards over the session ahead. Crucially, the key reversal signal requires confirmation from a successive up-period to be validated.
AUD/USD: Inverted Hammer May Signal Intraday Turning Point
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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