AUD/USD Bulls Hesitate Near Key Resistance As Doji Forms

By DailyFx | June 10, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Pending Short
  • Doji forming on the daily suggesting hesitation from the bulls
  • Bearish candlestick on four hour chart awaits confirmation

The Australian Dollar is trading shy of noteworthy resistance at the 0.9375 mark. While the candle for the most recent day has yet to close, it appears to be forming a Doji, which would suggest indecision from traders. Given notable selling pressure is likely looming at the range-top overhead, the emergence of a bearish reversal candlestick would be taken as a sell signal, with a potential target offered by support at 0.9210.

AUD/USD: Knocks on Noteworthy Resistance as Doji Forms

AUD/USD Bulls Hesitate Near Key Resistance As Doji Forms

Daily Chart - Created Using FXCM Marketscope 2.0

An examination of the four hour chart reveals the emergence of a Gravestone Doji candlestick following a test of 0.9375. This offers a sign of hesitation from the bulls as they struggle to push prices beyond the key resistance level. Confirmation from a successive down-period would help offer confirmation of the signal and suggest a retreat to intraday support at 0.9325.

AUD/USD: Gravestone Doji Suggests Hesitation From The Bulls

AUD/USD Bulls Hesitate Near Key Resistance As Doji Forms

4 Hour Chart - Created Using FXCM Marketscope 2.0

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.

comments powered by Disqus
Related Forex Analysis
  1. AUD/USD Remains Range-Bound As Dojis Highlight Hesitation
    Forex News

    AUD/USD Remains Range-Bound As Dojis Highlight Hesitation

  2. Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms
    Forex News

    Pound to Fall on Ebbing BOE Rate Hike Bets if 3Q UK GDP Underperforms

  3. AUD/USD Technical Analysis: Still Looking for Direction
    Forex News

    AUD/USD Technical Analysis: Still Looking for Direction

  4. AUD/USD Triangle Break Near?
    Forex News

    AUD/USD Triangle Break Near?

  5. US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen
    Forex News

    US Dollar Looks like an Attractive Buy versus Euro, Sterling, Yen

Trading Center