AUD/USD Recovers Ground As A Piercing Line Pattern Awaits Confirmation
- AUD/USD Technical Strategy: Shorts Preferred
- Piercing Line Candlestick Formation Awaiting Confirmation
- Dojis On The H4 Chart Denoted Fading Downside Momentum
The Australian Dollar has recouped some of its recent declines as a Piercing Line pattern takes shape on the daily. Critically, the key reversal formation awaits confirmation from the close of the current candle and a successive up day. Further, recent bullish candlestick patterns including a Morning Star have been met with little follow-through. This suggests some skepticism over a sustained recovery is warranted. Heavy selling pressure is likely to be encountered at the 90 US cent ceiling.
AUD/USD: Downside Risks Remain While Sub 0.9000
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A parade of Doji formations on the four hour chart indicated hesitation from traders to lead the pair lower near 0.8855. Yet a void of bullish reversal signals may limit the scope for a recovery. Should a bearish candlestick pattern emerge it would be seen as a fresh selling opportunity given the context afforded by the daily.
AUD/USD: Dojis Highlight Hesitation From Traders Near 0.8855 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.