AUD/USD Tennis Match Continues As Short Candles Indicate Indecision

By DailyFx | August 27, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Directional Bias Lacking With Reversal Signals Absent
  • Leap Over 0.9330 Hurdle Required To Open 0.9455

AUD/USD continues its tennis match between 0.9280 and 0.9330 with an absence of key reversal signals offering the pair little guidance. Several short body candlesticks suggest that traders to lead the pair on a break in either direction of the narrow band. Clearance of the congestion near 0.9330 would likely be required to open a run on the Aussie’s recent highs near 0.9455.

AUD/USD: Short Body Candles Highlight Indecision

AUD/USD Tennis Match Continues As Short Candles Indicate Indecision

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

The four hour chart should continue to be monitored for early warnings signs of a turn in the persistent range. The emergence of a bearish reversal signal near the 0.9327/30 ceiling would open the potential for an intraday correction to the range-bottom at 0.9280.

AUD/USD: Awaiting Turning Point Signals Within Narrow Range

AUD/USD Tennis Match Continues As Short Candles Indicate Indecision

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.

Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: Dollar Hits a Record Before the ECB Weighs Further QE

  2. Forex News

    AUD Exposed To Further Declines As Yield Advantage Erodes

  3. Forex News

    EUR/USD Rebound Post-EZ CPI a Preview for ECB Next Week?

  4. Forex News

    AUD/USD Doji Duo Signals Bulls’ Reluctance To Return

  5. Investing

    AUD/USD Falls During Thin Trading

Trading Center