AUD/USD Awaits Candlestick Reversal Pattern Near Range-Top
- AUD/USD Technical Strategy: Shorts Preferred
- Retests Upper-Bound Of Trading Band
- Doji Suggests Hesitation In Intraday Trade
AUD/USD is once again teasing traders at the top of its recent trading band. The recent consolidation has left a void of clear cues from candlesticks. The proximity of current prices to the nearby ceiling may offer a fresh short opportunity with a target offered by the other side of the pair’s range. The four hour chart should be monitored for intraday reversal signals and entry timing.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals the presence of a Doji formation on the daily, which suggests indecision from traders near the 0.8830 barrier. Yet the candlestick pattern is not considered a key reversal pattern, which casts some doubt on the potential for a correction over the session ahead.
AUD/USD: Doji Suggests Hesitation At Trading Band Top
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.