AUD/USD Bears Retreat Near Range-Bottom As Dojis Signal Hesitation

By DailyFx | August 14, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Dojis Highlight Hesitation Near Range-Bottom
  • Harami On H4 Warned Of An Intraday Correction

The Australian Dollar has managed to climb back above the 0.9280 barrier after several Doji formations suggested hesitation from the bears to lead the currency lower. At this stage bullish reversal patterns remain absent on the daily, which casts doubt over the potential for a sustained recovery for the Aussie. A daily close below the range-bottom at 0.9210 would cast the immediate risk lower and open the door to a knock on 0.8990.

AUD/USD: Dojis Highlight Hesitation Near Range-Bottom

AUD/USD Bears Retreat Near Range-Bottom As Dojis Signal Hesitation

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

Turning to the four hour chart for intraday signals; a Harami formation suggests the potential for a correction to nearby support at 0.9280. A close below the nearby floor would cast the spotlight on the pair’s recent lows near 0.9240.

AUD/USD: Harami Warned of An Intraday Correction

AUD/USD Bears Retreat Near Range-Bottom As Dojis Signal Hesitation

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

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.

Related Forex Analysis
  1. AUD/USD Technical Analysis: Support Found Below 0.85
    Forex News

    AUD/USD Technical Analysis: Support Found Below 0.85

  2. Bullish US Dollar Undermined by Shaky October Durable Goods Orders
    Forex News

    Bullish US Dollar Undermined by Shaky October Durable Goods Orders

  3. AUD/USD Downside Risks Remain With Bullish Reversal Patterns Lacking
    Forex News

    AUD/USD Downside Risks Remain With Bullish Reversal Patterns Lacking

  4. Japanese Yen May Rise as Year-End Capital Flows Begin to Emerge
    Forex News

    Japanese Yen May Rise as Year-End Capital Flows Begin to Emerge

  5. Dollar and Yields Slide Despite Improved US Data
    Forex News

    Dollar and Yields Slide Despite Improved US Data

Trading Center