Thursday, May 1, 2014

AUD/USD Key Reversal Pattern Leaves Traders In Suspense Near 0.9300




Talking Points



  • AUD/USD Technical Strategy: Shorts Preferred


  • Hammer formation signals potential for further recovery


  • Key resistance at 0.9300, Support at 0.9200/10 in intraday trade


The Aussie is teasing traders near the critical 0.9300 handle following a return of the bulls near 0.9210. While we’ve seen a Hammer formation emerge on the daily, we need to clear 0.9300 to make a bullish reversal possible.



AUD/USD: Hammer Emerges As Prices Recover


AUD/USD Key Reversal Pattern Leaves Traders In Suspense Near 0.9300


Daily Chart – Created Using FXCM Marketscope 2.0



Similarly, on the four hour chart several Hammer candlesticks suggest that the Australian Dollar bulls remain intent on wrestling control of price action from the bears. However, the significance of the 0.9300 level is made further evident by an examination of intraday price action, with several long wicks forming near the critical level.



AUD/USD: Coiled Like Spring Below 0.9300


AUD/USD Key Reversal Pattern Leaves Traders In Suspense Near 0.9300


4 Hour Chart – Created Using FXCM Marketscope 2.0



By David de Ferranti, Market Analyst, FXCM



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AUD/USD Key Reversal Pattern Leaves Traders In Suspense Near 0.9300

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