AUD/USD Wild Whipsaw Leaves Bullish Candlestick Formation In Its Wake
- AUD/USD Technical Strategy: Sidelines Preferred
- Rebound Produces ABullish Engulfing Pattern
- Dark Cloud Cover On H4 Awaits Confirmation
AUD/USD continues to swing wildly within its wide trading band with the latest whipsaw leaving a Bullish Engulfing formation in its wake. Yet the key reversal candlestick pattern may struggle to find follow-through with heavy selling pressure hanging overhead near the 0.8900 handle. A daily close beyond the ceiling would be required to suggest a continued advance. Whereas a pullback below the 0.8660 barrier is needed to pave the way for a descent on the July 2010 low near 0.8320.
AUD/USD: Bullish Engulfing Pattern Emerges On Intraday Rebound
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Candlestick patterns have helped signal intraday turning points within AUD/USD’s recent range. The latest Dark Cloud Cover formation offers an ominous warning, yet awaits confirmation to suggest a retreat over the session ahead. Buying interest is likely to be renewed at the critical 0.8660 barrier.
AUD/USD: Dark Cloud Cover Offers Ominous Warning
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.