Talking Points
- Strategy: Short (From 0.8530), Stop: 0.8540 (Daily Close), Target: 0.8330
- Pair of Dojis Suggest Bulls Remain Reluctant To Return
- Shooting Star On The H4 Timeframe Offered A Turning Signal
AUD/USD has pulled back below the 0.8540 mark leaving a string of Dojis in its path. This signals reluctance from the bulls to return to the pair and leaves it devoid of key reversal patterns. In turn, shorts remain preferred with the next definitive target offered by the July 2010 trough at 0.8330.
AUD/USD: Dojis Signal Reluctance From The Bulls
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Shooting Star formation on the four hour chart offered an early warning sign for a potential pullback for the Aussie. While bullish patterns are lacking there may be some hesitation from traders ahead of intraday support at 0.8480. Given the context afforded by the daily a downside break would potentially open the next leg lower towards 0.8320.
AUD/USD: Shooting Star Offered An Early Turning Signal In Intraday Trade
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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