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AUD/USD Dark Cloud Cover Formation Offers Ominous Warning

AUD/USD Dark Cloud Cover Formation Offers Ominous Warning

2014-07-03 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • AUD/USD Technical Strategy: Shorts Preferred
  • Dark Cloud Coversignals potential for continued pullback
  • Harami on four hour chart offered an advance warning

The Australian Dollar has been quick to retrace its hard-fought gains with the currency plunging back below the 0.9440 mark in trading today. A spike in retail trading volume alongside a Dark Cover Pattern offers an ominous warning for a continued decline. Buyers are likely to emerge at the 0.9210 mark.

AUD/USD: Dark Cloud Cover Offers Ominous Warning

AUD/USD Dark Cloud Cover Formation Offers Ominous Warning

Daily Chart - Created Using FXCM Marketscope 2.0

Examining intraday price action on the four hour chart a Harami candlestick offered an advance warning of a pullback for the Aussie. A corrective bounce looks doubtful at this stage given the lack of bullish reversal patterns.

AUD/USD: Harami Offered Advance Warning

AUD/USD Dark Cloud Cover Formation Offers Ominous Warning

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Currency Analyst, DailyFX

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