AUD/USD Rebound Producing A Piercing Line Candlestick Pattern
- AUD/USD Technical Strategy: Shorts Preferred
- Piercing Line Pattern Awaiting Confirmation
- Daily Close Below 0.8660 May Open 0.8320
AUD/USD’s descent appears to have stalled within striking distance of the 0.8660 barrier as a Piercing Line pattern takes shape. However, the key reversal formation awaits the close of the current candle and an ensuing up-day to suggest a base may be in place. In the absence of validation a revisit of the 2014 low looks likely amid a core downtrend on the daily. A daily close below the nearby floor could open the July ’10 Low near 0.8320.
AUD/USD: Piercing Line Pattern Awaits Confirmation Near 2014 Low
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The “Doji, dive, rinse, repeat” pattern appears to have dissipated on the four chart. In its place a Bullish Engulfing formation has emerged, which awaits confirmation from a period of follow-through. However, the potential for a sustained advance over the session ahead may prove difficult with several layers of congestion overhead.
AUD/USD: Doji Déjà Vu Gives Rise To A Bullish Reversal Signal
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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