AUD/USD Sideways Drift Leaves Range Trading Preferred

By DailyFx | Updated July 30, 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

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

    Euro Shrugs Off Widely Expected Greek Election Outcome

  2. Investing

    AUD/USD Breaks Down on Friday

  3. Forex News

    AUD/USD Technical Analysis: Working on Sixth Down Day

  4. Investing

    AUD/USD Falls Significantly on Thursday

  5. Forex News

    Pound Eyeing Carney Comments for Guidance, Euro to Look Past PMIs

Trading Center