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Talking Points

  • AUD/USD Technical Strategy: Shorts Preferred
  • Dark Cloud Cover Suggests Declines To Continue
  • Recovery Doubtful In Absence Of Reversal Signals

The Australian Dollar may be set to extend its recent declines following the emergence of a Dark Cloud Cover candlestick formation near the currency’s range-top. An absence of bullish reversal signals casts doubt on a recovery and puts the 0.9320 floor in focus.

AUD/USD: Dark Cloud Cover Pattern Warns Of Pullback To Range-Bottom

AUD/USD 0.9320 Floor In Focus Following Dark Cloud Cover Formation

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

A Hanging Man on the four hour chart offered an early warning signal of a potential correction over the session. Several Dojis near 0.9380 suggested indecision from traders yet reversal signals remain lacking. Buyers are likely to emerge at intraday support near 0.9360.

AUD/USD: Eyeing Intraday Support With Reversal Signals Lacking

AUD/USD 0.9320 Floor In Focus Following Dark Cloud Cover Formation

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

By David de Ferranti, Currency Analyst, DailyFX

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