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

Related Forex Analysis
  1. Forex News

    US Dollar May Rise if Home Sales Top Estimates, Boosting Fed Outlook

  2. Forex News

    AUD/USD Technical Analysis: Digesting Above 0.81 Figure

  3. Forex News

    Yen Down on Risk Appetite Swell But Year-End Flows May Fuel Turn

  4. Forex News

    AUD/USD Technical Analysis: Support Found Above 0.81

  5. Forex News

    AUD/USD Exhaustion Trade- Shorts at Risk Above 8064

Trading Center