AUD/USD Morning Star Formation Awaits Confirmation Near 0.9100
- AUD/USD Technical Strategy: Shorts Preferred
- Bullish Reversal Signal Awaiting Confirmation
- Climb Over 0.9100 Handle May Prove Difficult
The Australian Dollar’s recent rebound has yielded a Morning Star candlestick pattern on the daily. Yet the key reversal formation awaits confirmation from a successive up-day in order to suggest a sustained recovery for the currency. This may prove difficult given heavy selling pressure is evident at the 0.9100 ceiling. A climb over the nearby barrier would be required to suggest a small base and the potential for a retest of the former range-bottom at 92 US cents.
AUD/USD: Reversal Signal Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early indication of a potential bounce for the Aussie. A Morning Star pattern near the 0.9000 floor suggested the bulls were returning in intraday trade. However, a more recent Doji candlestick does little to inspire confidence in a continued recovery for the AUD/USD.
AUD/USD: Doji Highlights Hesitation From Traders Near 0.9100/20 Barrier
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.