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Forex Strategy: AUD/USD Struggles As 0.9300 Handle Caps Gains

David de Ferranti

Talking Points

  • AUD/USD Technical Strategy: sidelines preferred

  • Bearish reversal signal emerges on daily but fails to receive confirmation

  • Doji in intraday trade suggests bulls prepared to support prices near 0.9210

The Australian Dollar continues to flounder as sellers keep the currency contained below the 0.9300 handle. While a Shooting Star formation had hinted at a potential reversal, it failed to receive confirmation from a successive down day, which casts doubt over a potential correction. Buyers may look to keep prices supported around former resistance at 0.9210.

AUD/USD: Rally Stalls As Shooting Star Forms

Forex-Strategy-AUDUSD-Struggles-As-0.9300-Handle-Caps-Gains_body_Picture_2.png, Forex Strategy: AUD/USD Struggles As 0.9300 Handle Caps Gains
Forex-Strategy-AUDUSD-Struggles-As-0.9300-Handle-Caps-Gains_body_Picture_2.png, Forex Strategy: AUD/USD Struggles As 0.9300 Handle Caps Gains

Daily Chart - Created Using FXCM Marketscope 2.0

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Similarly a look at intraday price action suggests that the potential for downside follow-through is limited at this stage. If the bears manage to take hold of prices and push the AUD/USD below support at 0.9210, it may open up further falls back towards the 0.9130 mark.

AUD/USD: Bears Hesitant Near 0.9210

Forex-Strategy-AUDUSD-Struggles-As-0.9300-Handle-Caps-Gains_body_Picture_1.png, Forex Strategy: AUD/USD Struggles As 0.9300 Handle Caps Gains
Forex-Strategy-AUDUSD-Struggles-As-0.9300-Handle-Caps-Gains_body_Picture_1.png, Forex Strategy: AUD/USD Struggles As 0.9300 Handle Caps Gains

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Follow David on Twitter: @Davidde

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