Talking Points
- AUD/USD Technical Strategy: Shorts Preferred
- Dark Cloud Coversignals potential for continued pullback
- Piercing Line on four hour chart hints at an intraday recovery
The Australian Dollar has been quick to retrace its hard-fought gains with the currency plunging back below the 0.9440 mark in trading this week. A spike in retail trading volume alongside a Dark Cover Pattern offers an ominous warning for a continued decline. However, follow-through at this stage has been limited with a Doji forming on the daily, suggesting some hesitation by the bears. Buyers are likely to emerge at the 0.9210 mark.
AUD/USD: Dark Cloud Cover Offers Ominous Warning
Daily Chart - Created Using FXCM Marketscope 2.0
Examining intraday price action on the four hour chart a Piercing Line pattern paints a slightly different picture to the daily. The bullish reversal pattern hints at an intraday recovery, which may see sellers emerge at the 0.9385 mark.
AUD/USD: Piercing Line Pattern Hints At Intraday Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
