Monday, December 1, 2014

AUD/USD Doji Emerging On The Daily Denotes Indecision




Talking Points



  • Strategy: Short (From 0.8530), Stop: 0.8540 (Daily Close), Target: 0.8330


  • Doji On The Daily Suggests Indecision From Traders


  • H4 Reveals Morning Star Emerging In Intraday Trade


AUD/USD is in the process of producing a Doji formation in late European trading. Yet the sign of indecision may be insufficient to suggest a recovery over the short-term. Amid a core downtrend, shorts remain preferred with a potential target offered by the July 2010 lows near 0.8540. A daily close above 0.8450 would be required to suggest a base for the pair.



AUD/USD: Indecision Evident In Early Trade


AUD/USD Doji Emerging On The Daily Denotes Indecision


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



The four hour chart paints a similar picture to the daily with a Gravestone Doji on offer. Yet the close of the current candle in its present position would mark a Morning Star formation. Which would offer a more definitive bullish reversal signal in intraday trade.



AUD/USD: Morning Star Pattern Taking Shape


AUD/USD Doji Emerging On The Daily Denotes Indecision


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



By David de Ferranti, Currency Analyst, DailyFX



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AUD/USD Doji Emerging On The Daily Denotes Indecision

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