AUD/USD Hanging Man Delivers Drop To 0.8660 Barrier
- AUD/USD Technical Strategy: Sidelines Preferred
- Hanging Man Offered Bearish Signal At 0.8885
- Recovery Questionable Amid Absence of Reversal Signals
AUD/USD revisited the 0.8660 target offered in recent reports which followed a bearish signal offered by a Hanging Man formation. The critical floor is likely to prompt some hesitation from traders, yet with an absence of key reversal patterns a sustained recovery may prove difficult. Sellers are likely to keep the pair’s advance capped at the 0.8885 ceiling.
AUD/USD: Revisits 0.8660 Floor Following Bearish Candlestick Pattern
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a Dragonfly Doji formation that denotes indecision from traders near the 0.8660 barrier. Yet this does not mark a key reversal pattern which suggests some skepticism over intraday gains may be warranted.
AUD/USD: Dragonfly Doji Signals Hesitation Near Recent Lows
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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