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

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  2. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  3. Forex News

    Australian Dollar Looks to RBA, US Jobs Data to Drive Volatility

  4. Forex News

    Monetary Policy Speculation Continues Next Week With NFPs, RBA and BoE

  5. Forex News

    Weakest Wage Growth Since 1982 Shocks USD Out of Intraday Rally

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!