AUD/USD Doji Suggests Hesitation From The Bulls In Intraday Trade
- AUD/USD Technical Strategy: Shorts Preferred
- Bearish Candlestick Pattern Finds Little Follow-Through
- H4 Suggests Indecision As Denoted By A Doji Formation
AUD/USD has witnessed a lackluster response to a Bearish Engulfing formation casting some doubt over the potential for a pullback. Yet the proximity of prices to the nearby range-top also limits the scope for an advance. This leaves shorts preferred with a daily close above the 0.8885 ceiling required to negate a bearish technical bias.
AUD/USD: Bearish Signal Falls Flat
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart suggests the bulls are already showing signs of hesitation near the 0.8830 barrier as denoted by a Doji formation. The intraday timeframe should be closely monitored as the close of a strong ‘down candle’ would yield an Evening Star formation. Such a key reversal formation would warn of a retreat to the 0.8735 mark over the session ahead.
AUD/USD: Doji Suggests Indecision From The Bulls Near 0.8830
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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