AUD/USD Sideways Drift Leaves Range Trading Preferred

By DailyFx | July 21, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Clear candlestick reversal patterns absent on the daily chart
  • Doji in intraday trade highlights hesitation near 0.9400

AUD/USD remains range-bound with key reversal signals absent on the daily, suggesting the consolidation may continue. Given the narrow 0.9320 and 0.9440 corridor remains intact, turning to intraday timeframes may offer short-term range-trading opportunities.

AUD/USD: Consolidation Between 0.9320 and 0.9440 Continues

AUD/USD Sideways Drift Leaves Range Trading Preferred

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

Examining the four hour timeframe; the psychologically-significant 0.9400 handle appears to be offering some intraday resistance. A Doji candlestick highlights hesitation amongst the bulls and while not classified as a reversal signal, could offer an early indication of a shift in sentiment over the session ahead. A pullback would likely find support at 0.9325, while an upside break would open the 0.9440 range-top.

AUD/USD: Doji Highlights Hesitation Near 94 US Cent Handle

AUD/USD Sideways Drift Leaves Range Trading Preferred

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

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

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