DailyFX.com -

Talking Points

• Strategy: Short, Stop: 0.8660 (Close), Target: 0.8330

• Bullish Engulfing Formation Denied Confirmation

• Doji On H4 Signaled Bulls’ Intraday Exhaustion

The AUD/USD witnessed a suspenseful session on Monday as it probed above the key 0.8660 barrier in intraday trade. However, the daily close below the ceiling has left a Bullish Engulfing formation lacking confirmation. This leaves shorts preferred with a spotlight on the July 2010 low near 0.8320 as a potential target.

AUD/USD: Bullish Reversal Signal Denied Confirmation

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart revealed signs of exhaustion from traders in the form of a Doji candlestick near 0.8680. With bullish reversal patterns lacking the pair may be set to continue its descent towards the 0.8550 floor.

AUD/USD: Doji Signaled Intraday Exhaustion At 0.8680

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @DaviddeFe

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.