AUD/USD Consolidation Continues With Candlestick Signals Scant

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Long upper wick signals doubt amongst the bulls at resistance
  • Test of key support awaits bullish candle to signal bounce

The Australian Dollar continues to consolidate within the 0.9320 to 0.9440 range with little in the way of clear candlestick signals to suggest a directional bias. While a long upper wick above 0.9440 on one of the daily candles suggests hesitation from the bulls it is insufficient to suggest a bearish reversal.

AUD/USD: Bulls Lose Steam Near Key Resistance

AUD/USD Consolidation Continues With Candlestick Signals Scant

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

Taking a look at a shorter timeframe; the pair is testing noteworthy intraday support at 0.9360. However, at this stage bullish patterns appear absent for the pair, which casts doubt on the potential for a bounce over the session ahead.

AUD/USD: Testing Key Support With Reversal Patterns Absent

AUD/USD Consolidation Continues With Candlestick Signals Scant

4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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