AUD/USD Teases At A Breakout With Bearish Candlesticks Lacking

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Bullish Engulfing Pattern Fails To Find Follow-Through
  • Doji Indicates Indecision From Traders Near Range-Top

AUD/USD is struggling to sustain recent gains as a Doji on the daily denotes hesitation from the bulls. However, a void of classic reversal patterns casts some doubt on the potential for a pullback to the range-bottom at 0.9210. This leaves awaiting a breakout from the narrow trading band as the most prudent course of action.

AUD/USD: Loses Steam Near Range-Top As Doji Emerges On The Daily

AUD/USD Teases At A Breakout With Bearish Candlesticks Lacking

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

The four hour chart offered an ominous warning of an intraday correction for the Aussie. A Dark Cloud Cover formation indicated a potential turning point near the 0.9370 ceiling. Buying interest in the pair appears to have been renewed at the 0.9327/30 mark. Clearance of the barrier would be required to set the stage for a run towards the recent lows near 0.9271.

AUD/USD: Dark Cloud Cover Warned Of An Intraday Correction

AUD/USD Teases At A Breakout With Bearish 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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