AUD/USD Consolidation Continues With Cues From Candlesticks Lacking
- AUD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Formation Fails To Find Validation
- Bearish Engulfing Pattern Offered Early Warning
AUD/USD remains trapped within the 0.8660 to 0.8900 trading band after a Piercing Line pattern failed to find confirmation. With cues from candlesticks now lacking a more constructive setup is desired in order to offer a clearer directional bias for the pair. A daily close below the 0.8660 barrier would be required to pave the way for a descent on the July 2010 low near 0.8320.
AUD/USD: Awaiting More Constructive Setup As Consolidation Endures
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bearish Engulfing formation on the four hour chart offered an early warning sign of a potential pullback. Its sibling a Bullish Engulfing pattern is now taking shape, which if confirmed by a successive up-period may signal the potential for a recovery over the session ahead.
AUD/USD: Bullish Engulfing Formation Takes Shape 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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