AUD/USD Candlestick Analysis: Upturn Confirmation Pending
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- AUD/USD Strategy: Flat
- Chart Positioning Hints at Bounce Ahead
- Rebound Confirmation Pending for Now
The Australian Dollar may be preparing to turn higher against its US namesake after a drop to the lowest level in six years culminated in indecision. The standstill is marked by a pair of Spinning Top candles, with positive RSI divergence warning of ebbing downside momentum. While that hints at a possible upturn in the cards, a definitive reversal signal is absent for the time being. Furthermore, the immediate down trend marked by the series of lower highs and lows from early September remains intact.
A break above the intersection of the 14.6% Fibonacci retracement and falling channel top resistance at 0.7899 would amount to bullish confirmation, opening the door for a move to challenge the 23.6% level at 0.8069. Alternatively, a reversal below the 38.2% Fib expansion at 0.7732 targets the 50% threshold at 0.7558.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com