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Forex Strategy: AUD/USD Open to Gains in Absence of Reversal Signal

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Talking Points

The Bullish Engulfing candlestick pattern on the hourly chart highlighted in yesterday’s report continues to hold influence over price action for the Aussie Dollar as the pair extends its recent gains. We’re yet to see a key reversal pattern emerge that may suggest a correction for the currency despite some resistance being encountered at the 0.9025 mark.

A Piercing Line formation on the daily chart has similarly foreshadowed gains for the AUD/USD. A break above the 2014 high of 0.9085 would support a bullish technical bias for the pair, with a potential target offered by the 0.9160 resistance level.

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Hourly Chart – Created Using FXCM Marketscope 2.0

Daily Chart – Created Using FXCM Marketscope 2.0

— Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

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