AUD/USD Struggles Sub 0.8540 As Candlesticks Signal Hesitation
- Strategy: Short (From 0.8530), Stop: 0.8540 (Daily Close), Target: 0.8330
- Doji On The Daily Suggests Indecision From Traders
- H4 Morning Star Pattern Offers An Intraday Reversal Signal
AUD/USD has left a Doji formation in its wake suggesting hesitation from the bears to drag the pair lower. Yet amid a core downtrend, shorts remain preferred with a potential target offered by the July 2010 lows near 0.8320. A daily close above 0.8450 would be required to suggest a base for the pair.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a more constructive picture than the daily following the rise of a Morning Star pattern. This in turn opens the prospect of an intraday recovery. Yet given the context afforded by the daily the scope of a sustained advance is potentially limited.
AUD/USD: Morning Star Rises 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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