Talking Points
- Strategy: Flat
- Doji Suggests Bulls Have Lost Momentum
- Evening Star Offered An Early Warning
AUD/USD traders are showing signs of indecision as denoted by a Doji formation on the daily. As noted in recent reports the lingering signs of a near-term downtrend meant a clean run higher was likely to prove difficult. Yet a more definitive bearish reversal signal is left desired to shift the immediate risk lower. A slide back under 0.8660 would return the risks to the recent lows near 0.8540.
AUD/USD: Bulls Lose Steam As A Doji Emerges On The Daily
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
An Evening Star on the four hour chart offered an early warning sign that the bears were looking to return to the pair. A close below the 0.8660/80 barrier would open the prospect of a run on the 0.8550 floor.
AUD/USD: Evening Star Offered An Early Warning In Intraday Trade
4 Hour Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
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.