- AUD/USD Technical Strategy: Shorts Preferred
- Bullish Reversal Signal Awaiting Confirmation
- Climb Over 0.9100 Handle May Prove Difficult
The Australian Dollar’s recent rebound has yielded a Morning Star candlestick pattern on the daily. Yet the key reversal formation awaits confirmation from a successive up-day in order to suggest a sustained recovery for the currency. This may prove difficult given heavy selling pressure is evident at the 0.9100 ceiling. A climb over the nearby barrier would be required to suggest a small base and the potential for a retest of the former range-bottom at 92 US cents.
AUD/USD: Reversal Signal Awaiting Confirmation
The four hour chart offered an early indication of a potential bounce for the Aussie. A Morning Star pattern near the 0.9000 floor suggested the bulls were returning in intraday trade. However, a more recent Doji candlestick does little to inspire confidence in a continued recovery for the AUD/USD.
AUD/USD: Doji Highlights Hesitation From Traders Near 0.9100/20 Barrier
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.