AUD/USD Recovery May Prove Limited With Sellers Sitting Nearby

By DailyFx | August 04, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Shorts Preferred
  • Dark Cloud Cover Offered Warning Near Range-Top
  • Harami Pattern May Find Limited Follow-Through

The Australian Dollar may struggle to recover further ground despite the emergence of a Harami pattern on the daily, given sellers remain nearby at 0.9320. A daily close above the critical resistance level would be required to confirm a bullish reversal, which would open the former range-top at 0.9440.

AUD/USD: Harami May Find Limited Follow-Through

AUD/USD Recovery May Prove Limited With Sellers Sitting Nearby

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

The four hour chart below reveals some hesitation by traders during the Asian session (denoted by a Doji candlestick near 0.9330). However, the pair has yet to see a bearish reversal pattern emerge, which would warn of a correction. This suggests the currency may consolidate over the session ahead.

AUD/USD: Bulls Hesistate Near 0.9320/0.9330

AUD/USD Recovery May Prove Limited With Sellers Sitting Nearby

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

By David de Ferranti, Currency Analyst, DailyFX

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