AUD/USD Scope For A Recovery Limited Despite Inverted Hammer
- AUD/USD Technical Strategy: Shorts Preferred
- Inverted Hammer Candlestick Awaiting Confirmation
- Dojis Pattern Repeats Itself On The 4 Hour Chart
The Australian Dollar’s short-lived rebound and subsequent reversal has left an Inverted Hammer formation in its wake. The bullish candlestick awaits confirmation from a successive up-day before it could suggest the potential for a more sustained recovery for the currency. Recent reversal signals including a Morning Star, were met with little follow-through. This suggests some skepticism over a change in sentiment is warranted. Heavy selling pressure is likely to be encountered at the 90 US cent ceiling while a push below 0.8815 may open the 2014 lows near 0.8660.
AUD/USD: Inverted Hammer Awaiting Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A pattern appears to be repeating itself on the four hour chart for the Aussie. A medley of Dojis have been followed by a short-lived recovery before the currency takes its next leg lower. Amid of a void of classic bullish signals, the latest iteration of the pattern may prove no different, which in turn favors selling into rallies.
AUD/USD: Suffers Doji Deja Vu
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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