AUD/USD Range May Remain As Dark Cloud Cover Rolls In
- AUD/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover To Warn Of A Retreat If Confirmed
- Awaiting Break of Narrow Band to Offer Clearer Signals
AUD/USD’s retreat from the 0.9370 hurdle has generated a Dark Cloud Cover formation. If confirmed by a successive down-day the reversal pattern may herald a retest of the 0.9280 floor. This could offer a short-term range-trading opportunity. Yet the juice left to squeeze appears somewhat limited. This leave awaiting a break of the pair’s narrow corridor preferred.
AUD/USD: Range May Remain As Dark Cloud Cover Emerges
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
As noted in the last candlesticks report, the four hour chart offered an early warning of a correction. The Bearish Engulfing formation signaled the potential for a pullback near the 0.9370 barrier. However, the bears appear to have lost steam in intraday trade as denoted by a Doji candlestick near 0.9327.
AUD/USD: Bearish Engulfing Pattern Warned Of An Intraday Correction
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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