Tanalys

AUD/USD Cautious Advance Continues With A Piercing Line In Tow

Talking Points

The Australian Dollar has edged cautiously higher with a Piercing Line pattern in the rearview mirror offering a bullish signal for the currency. The daily close over the 0.8815 hurdle suggests a small base may be in place and opens a retest of the 0.8885 ceiling. While a Hanging Man has also emerged it awaits confirmation from a successive down period in order to be validated.

AUD/USD: Key Reversal Pattern Emerges Near 2014 Low

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

The four hour chart reveals a Dragonfly Doji formation which signals some reluctance from the bulls to lead the pair higher. However, the candlestick is not considered a key reversal pattern, which leaves a correction as questionable. Intraday support now rests at the 0.8830 floor.

AUD/USD: Dragonfly Doji Demonstrates Some Reluctance From The Bulls

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.

Exit mobile version