Talking Points
- AUD/USD Technical Strategy: Sidelines Preferred
- Upside breakout may have legs to continue run in absence of bearish patterns
- Awaiting daily close above 0.9440 to confirm conviction amongst the bulls
The Australian Dollar is threatening a break above its long-held range-top at 0.9440 with an absence of bearish candlesticks casting doubt on a correction. Given the significance of the resistance level over recent months, a daily close would be required to signal enough conviction amongst traders to open up a run on the 0.9540 mark.
AUD/USD: Probe Above Key Resistance Awaits Daily Close
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Reversal candlesticks are similarly lacking on the four hour timeframe, which makes a pullback look doubtful at this point. Given the context afforded by the daily waiting for a close above resistance at 0.9440 may offer the requisite conditions for a sustained upside breakout.
AUD/USD: Awaiting Confirmation Of An Upside Breakout
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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