AUD/USD Gives Back Gains As Traders Look Past Bullish Pattern
- AUD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Near 0.8660 Sees A Lackluster Response
- Convincing Close Over 0.8815 Needed To Hint At A Base
AUD/USDhas seen a lackluster response to a Piercing Line pattern that was produced on the daily. With a region of resistance keeping the pair capped below the 0.8815 barrier an advance may prove challenging. A more convincing 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 near 0.8830 indicate that upside momentum is fading. However, with an absence of clear reversal signals a consolidation may be more likely than a severe correction.
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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