AUD/USD: indecisive market, focus on today’s close

• AUD/USD created a doji candle yesterday, signaling indecision in the market.
• A close below 0.7086 (low of Doji candle) would imply bearish continuation.
• Risk aversion  is likely to keep the Aussie dollar under pressure.  

The AUD/USD witnessed a solid two-way business on Thursday before ending largely unchanged on the day at 0.7106.

Essentially the pair created a doji candle, which is considered a sign of indecision in the marketplace. As the candle has appeared at the bottom of the sell-off from the recent high of 0.7395, one may say that the indecision is predominantly among the bears.

As a result, only a close below 0.7086 (low of yesterday’s doji candle) would revive the bearish outlook.

Moreover, the pair is likely to drop below that key support, courtesy of risk aversion in the equities. The US stock markets fell on Thursday after the US House of Representatives Speaker Paul Ryan said that President Donald Trump would not sign a temporary government funding resolution, raising the risk of a partial government shutdown.

Notably, stocks are likely to trade risk-averse for the fourth day straight as the S&P 500 futures are currently reporting a 0.20 percent drop. The AUD, therefore, is likely to remain under pressure.

AUD/USD Technical Levels