AUD/USD Bounces From 0.8660 Target As A Piercing Line Pattern Emerges
- AUD/USD Technical Strategy: Short Pending
- Bounce From Critical Floor Producing A Reversal Signal
- Long Lower Wick On H4 Candle Denotes Bears’ Reluctance
AUD/USD has rebounded from the 0.8660 target offered in recent reports and appears to be producing a Piercing Line formation. If confirmed by the close of the current candle and a successive up-session it may herald a return to the range-highs near 0.8885. In the alternative scenario a close below the nearby floor would open fresh short entries and the next leg lower to the July ’10 low near 0.8320.
AUD/USD: Rebound Producing Piercing Line Pattern
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a sizeable lower wick on a recent candle, suggesting a lack of conviction amongst the bears to drag the Aussie below the 0.8660 mark. However, an absence of more definitive bullish reversal signals casts doubt on a continued advance over the session ahead. Intraday selling pressure appears evident at the 0.8735 ceiling.
AUD/USD: Long Lower Wick Demonstrates Reluctance From The Bears
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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