AUD/USD Cut Through Key Support Negates Bullish Candlestick Pattern
- AUD/USD Technical Strategy: Shorts Preferred
- Piercing Line Pattern Fails To Find Confirmation
- H4 Chart Reveals An Absence Of Reversal Signals
AUD/USD’s crash through the 0.8660 floor has left a Piercing Line pattern lacking confirmation, which may leave the pair exposed to further declines. The next definitive support rests some distance away at the July ’10 low near 0.8320. A close back above the 0.8660 barrier would be required to negate a bearish bias and suggest a base.
AUD/USD: Piercing Line Fails To Find Confirmation
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Some intraday support appears to have been found near 0.8560 as noted by the four hour chart. However, with a lack of definitive reversal signals a corrective bounce is questionable.
AUD/USD: Absence Of Reversal Signals Casts Doubt On A Bounce
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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