AUD/USD Dark Cloud Cover Delivers Dramatic Decline
- 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.