Talking Points
- AUD/USD Technical Strategy: Sidelines Preferred
- Piercing Line PatternEmerges On Bounce Off 0.8660
- Bullish Engulfing Formation Taking Shape On H4
AUD/USD has rebounded from the 0.8660 barrier which has produced a Piercing Line pattern on the daily. Critically, the key reversal formation awaits confirmation from a successive up-day to be validated. A continued advance would likely encounter renewed selling pressure at the nearby 0.8885 ceiling.
AUD/USD: Piercing Line Pattern Awaiting Confirmation
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart is in the process of producing a Bullish Engulfing formation. A close of the current candle above the 0.8780 mark could open the door a run on the recent intraday peaks near 0.8915.
AUD/USD: Bullish Engulfing Formation Takes Shape 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: @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.