AUD/USD Whipsaw Leaves A Piercing Line Pattern In Its Wake
- AUD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Near 0.8660 Awaiting Confirmation
- Close Over 0.8815 Ceiling Needed To Suggest A Base
AUD/USD’s sharp rebound from the 0.8660 floor has generated a Piercing Line candlestick pattern. Yet with strong selling pressure overhead the potential for the reversal pattern to generate a genuine shift in sentiment may be limited. A daily close over the 0.8815 hurdle would be required to suggest a base and could conceivably open a retest of the 0.8885 ceiling.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart suggests the Aussie’s recovery is already showing signs of exhaustion. An ensemble of Dojis, short body candles and a Hanging Man indicate that upside momentum is fading. This could open a revisit of the recent lows near 0.8660.
AUD/USD: Recovery Shows Signs Of Exhaustion In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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