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Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Dojis Highlighted Hesitation Near Range-Bottom
  • Absence of Reversal Signals Casts Doubt On A Correction

The Australian Dollar continues its cautious recovery with an absence of key reversal patterns suggesting the potential for further gains. A daily close above the former-range-bottom at 0.9330 would open a re-test of the recent highs near 0.9455.

AUD/USD: Dojis Highlighted Hesitation Near Range-Bottom

AUD/USD Edges Higher In Absence Of Bearish Reversal Candlesticks

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

Turning to the four hour chart reveals a similar narrative to the daily. A void of bearish reversal patterns casts doubt over the potential for a correction over the remainder of the session. This puts the spotlight on nearby intraday resistance at 0.9355.

AUD/USD: Spotlight On Intraday Resistance With Reversal Signals Missing

AUD/USD Edges Higher In Absence Of Bearish Reversal Candlesticks

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

By David de Ferranti, Currency Analyst, DailyFX

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