(MENAFN- DailyFX) DailyFX.com -
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
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
original source
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.