Aussie ‘Doji’ Signals Rebound Above 85 Cents: Technical Analysis
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Australia’s dollar may rebound almost 4 percent from a 4 1/2-year low versus the greenback reached this week, trading patterns suggest.
Candlestick charts show the Aussie formed a long-legged doji on Dec. 9, the day it touched 82.24 U.S. cents, a level unseen since June 2010. The pattern occurs when an asset’s price rises and falls significantly during the trading day only to close near its opening price, signaling a reversal. Australia’s currency completed a nine-day slide that day, the longest losing streak since it was floated in 1983.