AUD/USD Candlesticks Suggest Bulls Lacking Conviction Near Key Level

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Long upper wick signals doubt amongst the bulls at resistance
  • Morning Star pattern hints at a bounce in intraday trade

The Aussie Dollar bulls have seemingly lost steam after failing to breach the critical 0.9440 mark in recent trade. A long upper wick on the daily candle suggests hesitation from traders to push the pair higher. However, at this stage a key reversal pattern remains absent on the daily, which casts doubt over the potential for a correction.

AUD/USD: Bulls Lose Steam Near Key Resistance

AUD/USD Candlesticks Suggest Bulls Lacking Conviction Near Key Level

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

Taking a look at a shorter timeframe; a Bearish Engulfing pattern on the four hour chart warned of intraday weakness for the Aussie. However, a Morning Star formation may shift the tide in the bulls favor over the session ahead. Sellers will likely look to emerge at the 0.9435 mark.

AUD/USD: Bearish Engulfing Pattern Warned Of Intraday Retreat

AUD/USD Candlesticks Suggest Bulls Lacking Conviction Near Key Level

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    AUD/USD Range at Risk on Dovish RBA Forward Guidance- 0.7730 in Focus

  2. Forex News

    Four Rate Decisions - RBA, BoC, BoE, and ECB - and NFPs Highlight Week

  3. Forex News

    AUD/USD March Outlook Hinges on RBA Forward-Guidance, 4Q GDP Report

  4. Forex News

    Webinar: Key Scalps in Focus Ahead of RBA, ECB, NFPs

  5. Forex News

    AUD/USD Candlestick Analysis: Waiting to Confirm Rebound

Trading Center