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AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

David de Ferranti, Currency Analyst

Talking Points

  • 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

AUD/USD Recovery Hopes Fade With Reversal Pattern 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

AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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