Talking Points - AUD/USD Technical Strategy: Sidelines Preferred
- Clearance of 0.9300 opens 0.9375 then 0.9440
- Absence of bearish signal suggests further gains
The Australian Dollar has finally cleared its recent trading range between 0.9210 and 0.9300 following the formation of a Dragonfly Doji on the daily. With the push above key resistance for the currency, an extension to the 0.9440 mark may be on the cards given the absence of a bearish reversal pattern on the daily. Interim resistance is offered by the 0.9375 mark.
Daily Chart - Created Using FXCM Marketscope 2.0
The 4-hour chart continues to demonstrate hesitation from traders near the 0.9375/85 level of resistance. However, it may be too soon to call for a correction given the lack of a key reversal signal.
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX