The daily technical outlook for the Aussie dollar indicates a daily 'Harami' candle formation signifying a bullish pattern which was supported with the recent upward move towards the 1.0777 level, after the correction to the 1.0638. Although, the recent high of the Aussie Dollar at the 1.0843 was an extension price above our objective dated the 26th of January Market view report; considered a new high defining an uptrend has been established.
The contradiction would be a weekly formation that defines a spinning top signaling a probable correction is in sight. As some of the analyst have stated that the AUDUSD is a step away from a possible reversal. price wise could be a probability but trend wise its not.Of course, again otherwise proven to be wrong. An indecision could have been seen as the market in itself has been quiet for the opening trading day. The market behavior for the Aussie may well be simply a pause with a tight daily range before a resumption would be made towards the upward direction. Currently its slightly above the 21day MA of 1.0635 and otherwise the direction changes lower the support would be at 1.0540/50 levels within another rising channel still intact.
GUIDE FOR CANDLESTICK INTERPRETATION
Spinning Tops are depicted with small bodies relative to the shadows. This demonstrates some indecision on the part of the bulls and the bears. They are considered neutral when trading in a sideways market. However, in a trending or oscillating market, a relatively good rule of thumb is that the next days trading will probably move in the direction of the opening price. The size of the shadow is not as important as the size of the body for forming a Spinning Top.
A Harami candle chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In terms of candlestick colors, the bullish harami is a downtrend of negative-colored (black) candlesticks engulfing a small positive (white) candlestick, giving a sign of a reversal of the downward trend.
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