Talking Points
- AUD/USD Technical Strategy: Pending Short
- Dark Cloud Cover Formation Warns Of A Correction
- Recovery Doubtful Despite Test of Key Support
The Australian Dollar’s retracement of its recent gains has yielded a Dark Cloud Cover formation, warning a further pullback for the currency. The bearish pattern is the third in the space of a month and may herald another decline to the range-bottom at 0.9320. However, some skepticism over the potential for further follow-through may be warranted given the choppiness of recent price action.
AUD/USD: Dark Cloud Cover Pattern Warns Of Pullback To Range-Bottom
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Hanging Man on the four hour chart offered an early warning signal of a potential correction over the session. While the 0.9400 handle has seen some buyers emerge, the absence of bullish reversal signals casts doubt over a recovery.
AUD/USD: Teasing At Key Support With Reversal Signals Lacking
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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