AUD/USD Hurtles Towards Range-Bottom With Reversal Signals Lacking
- AUD/USD Technical Strategy: Shorts Preferred
- Absence of Bullish Patterns Casts Doubt On A Recovery
- Dark Cloud Cover On H4 Offered Early Warning
The Australian Dollar’s recent plunge casts a bearish light on the currency with a void of reversal signals to suggest a recovery. A daily close below 0.9280 would set the stage for an extended decline to the range-bottom near 0.9210.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Dark Cloud Cover candlestick formation on the four hour chart offered an early warning of a retreat for the Aussie. Similarly to the daily timeframe, the absence of bullish reversal patterns leaves a recovery as questionable at this stage. A close above former support-turned-resistance at 0.9280 would be required to suggest an intraday bounce.
AUD/USD: Dark Cloud Cover Offered Ominous Warning
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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