AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
- AUD/USD Technical Strategy: Shorts Preferred
- Piercing Line Lacking Confirmation Near 2014 Low
- Daily Close Below 0.8660 May Open 0.8320
AUD/USDis at a critical juncture as it teases at a break below the 0.8660 barrier. The sharp drop for the currency has left a Piercing Line pattern lacking confirmation - dashing hopes of a reversal for the pair. A daily close below the nearby floor could open the July ’10 low near 0.8320.
AUD/USD: Hopes For A Recovery Dashed With Piercing Line Lacking Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The Aussie has slid below intraday buying interest at the 0.8690 floor opening a test of the 2014 low near 0.8660 over the session ahead. A Harami pattern appears to be taking shape, yet awaits validation from a successive up period before it could hint at a bounce.
AUD/USD: Harami Emerging Near 2014 Low
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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