We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
AUD/USD Probes Above Critical Barrier Following Bullish Pattern

AUD/USD Probes Above Critical Barrier Following Bullish Pattern

2014-11-10 04:47:00
David de Ferranti, Currency Analyst
Share:

Talking Points

  • AUD/USD Technical Strategy: Shorts Preferred
  • Bullish Engulfing Formation Awaiting Confirmation
  • Looking At H4 Chart For Intraday Signs Of Exhaustion

AUD/USD faces a critical session as it probes above the 0.8660 mark with a Bullish Engulfing formation in its wake. Confirmation of the signal from a close above the barrier would suggest the potential for a further recovery towards the 0.8885 ceiling. However, recent similar reversal signals have found limited follow-through, casting some doubt on the potential for a sustained advance. Until the key level is breached on a daily close basis, shorts remain preferred.

AUD/USD: Bullish Reversal Signal Awaits Confirmation

AUD/USD Probes Above Critical Barrier Following Bullish Pattern

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart offered an early hint at a bounce as denoted by a Bullish Engulfing formation. At this stage bearish reversal signals appear lacking. Yet given the context afforded by the daily, the intraday timeframe should be monitored closely for signs of exhaustion from the bulls.

AUD/USD: Bullish Engulfing Formation Offered Early Hint At A Bounce

AUD/USD Probes Above Critical Barrier Following Bullish Pattern

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.

DISCLOSURES

News & Analysis at your fingertips.