AUD/USD Eyes Range-Floor With Reversal Candlesticks Lacking

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Absence of Reversal Signals Leaves Directional Bias Lacking
  • Narrow Trading Band Between 0.9210 and 0.9370 Intact

AUD/USD continues its consolidation within a narrow trading band with clear directional signals from candlestick analysis seemingly lacking. A retest, respect and appearance of a fresh bullish reversal signal near 0.9210 would set the stage for a rebound to the range-top at 0.9370.

AUD/USD: Consolidation Within Narrow Trading Band Continues

AUD/USD Eyes Range-Floor With Reversal Candlesticks Lacking

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

The four hour chart offered an early warning of a potential pullback for the Aussie. The Harami pattern near 0.9370/0.9400 offered an indication that the bears were wrestling control of prices. With key bullish reversal patterns for the currency now lacking a corrective bounce may prove difficult.

AUD/USD: Lack Of Reversal Signals Casts Doubt On An Intraday Bounce

AUD/USD Eyes Range-Floor With Reversal Candlesticks Lacking

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

By David de Ferranti, Currency Analyst, DailyFX

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