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Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Harami hints at a further recovery for the Aussie
  • Piercing Line pattern delivered intraday gains

The Australian Dollar has been afforded a recovery on the back of a Harami candlestick formation on the daily chart. The key reversal pattern suggests a potential push back to resistance at 0.9440. However traders should also be wary of the potential for the bears to regain control of price action given the warning provided last week by a Dark Cloud Cover formation.

AUD/USD: Harami Hints At Recovery

AUD/USD Harami Hints At A Recovery, 0.9440 Back In Focus

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

As noted in yesterday’s commodities report, a Piercing Line pattern on the four hour chart hinted at an intraday recovery for the Aussie to 0.9385. With a Shooting Star now forming the pair could be primed for a pullback in the session ahead. However, the candle needs to close before offering a valid signal.

AUD/USD: Piercing Line Pattern Provided Intraday Bounce

AUD/USD Harami Hints At A Recovery, 0.9440 Back In Focus

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

By David de Ferranti, Currency Analyst, DailyFX

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Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

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