![Technical Analysis for AUDUSD - Sidelines Preferred, Piercing Line Near 0.8660 Awaiting Confirmation and Close Over 0.8815 Technical Analysis for AUDUSD - Sidelines Preferred, Piercing Line Near 0.8660 Awaiting Confirmation and Close Over 0.8815](https://c.mql5.com/6/74/splash-67721.png)
Technical Analysis for AUDUSD - Sidelines Preferred, Piercing Line Near 0.8660 Awaiting Confirmation and Close Over 0.8815
8 October 2014, 12:11
![Damiano Fabiański Damiano Fabiański](https://c.mql5.com/avatar/2014/7/53B6A750-1C37.jpg)
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- AUD/USD Technical Strategy: Sidelines Preferred
- Piercing Line Near 0.8660 Awaiting Confirmation
- Close Over 0.8815 Ceiling Needed To Suggest A Base
AUD/USD’s sharp rebound from the 0.8660 floor has generated a Piercing Line candlestick pattern. Yet with strong selling pressure overhead the potential for the reversal pattern to generate a genuine shift in sentiment may be limited. A daily close over the 0.8815 hurdle would be required to suggest a base and could conceivably open a retest of the 0.8885 ceiling.
The four hour chart suggests the Aussie’s recovery is already showing signs of exhaustion. An ensemble of Dojis, short body candles and a Hanging Man indicate that upside momentum is fading. This could open a revisit of the recent lows near 0.8660.