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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

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