AUD/USD Traders Overlook Bullish Pattern As Consolidation Continues
- AUD/USD Technical Strategy: Sidelines Preferred
- Hammer Candlestick Fails To Find Follow-Through
- Leap Over 0.9330 Hurdle Required To Open 0.9455
The Australian Dollar has been left lacking inspiration near the 92 US cent floor after a Hammer formation failed to find follow-through. Several short body candlesticks suggest that traders are hesitant to lead major swings in either direction for the pair. Clearance of the congestion near 0.9330 would likely be required to open a run on the AUD/USD’s recent highs near 0.9455.
AUD/USD: Hammer Fails To Inspire The Bulls
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The significance of the 0.9280 floor is evident on the four hour timeframe. A Bullish Engulfing formation appears to be emerging near the support level. Yet the reversal signal awaits confirmation from the close of the current candle and a successive up period to be validated. Sellers are likely to re-emerge at intraday resistance near 0.9327.
AUD/USD: Bullish Engulfing Formation Emerging At Key Support
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.