Talking Points
- AUD/USD Technical Strategy: Sidelines Preferred
- Bullish Engulfing Pattern Fails To Find Follow-Through
- Doji Indicates Indecision From Traders Near Range-Top
AUD/USD is struggling to sustain recent gains as a Doji on the daily denotes hesitation from the bulls. However, a void of classic reversal patterns casts some doubt on the potential for a pullback to the range-bottom at 0.9210. This leaves awaiting a breakout from the narrow trading band as the most prudent course of action.
AUD/USD: Loses Steam Near Range-Top As Doji Emerges On The Daily
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an ominous warning of an intraday correction for the Aussie. A Dark Cloud Cover formation indicated a potential turning point near the 0.9370 ceiling. Buying interest in the pair appears to have been renewed at the 0.9327/30 mark. Clearance of the barrier would be required to set the stage for a run towards the recent lows near 0.9271.
AUD/USD: Dark Cloud Cover Warned Of An Intraday Correction
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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