AUD/USD Looks Past Inverted Hammer As Sights Remain On 0.8660
- AUD/USD Technical Strategy: Shorts Preferred
- Traders Look Past Inverted Hammer Candlestick
- Close Below 0.8815 To Open 2014 Low Near 0.8660
The Australian Dollar has resumed its descent as traders look past an Inverted Hammer candlestick on the daily. Against the backdrop of a core downtrend the bullish signal was likely to find little follow-through. This leaves the immediate risks skewed to the downside. A push below 0.8815 may open the 2014 lows near 0.8660.
AUD/USD: Primed For Further Weakness After Inverted Hammer Receives Little Consideration
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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