AUD/USD Rebound Sees A Morning Star Pattern Take Shape
- Strategy: Short (From 0.8530), Stop: 0.8540 (Daily Close), Target: 0.8330
- Bullish Morning Star Pattern Taking Shape On The Daily
- Harami On The H4 Timeframe Offered A Recovery Hint
AUD/USD’s small rebound has produced a Dragonfly Doji on the daily which is threatening to evolve into a bullish Morning Star formation. The close of the current candle above 0.8450 and an ensuing up-session would be required to confirm the pattern and open the prospect of further gains. Yet until received negative cues are offered by a short-term downtrend, leaving shorts preferred.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Harami formation on the four hour chart offered an early hint at a potential intraday bounce for the Aussie. With no key bearish patterns in sight for the pair it may be open to further gains over the session ahead. This in turn offers a slight contrast to the less positive picture painted by the daily.
AUD/USD: Lacking Bearish Reversal Signals In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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