AUD/USD Dark Cloud Cover Offers Ominous Warning Near Range-Top

By DailyFx | Updated July 25, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Pending Short
  • Dark Cloud Cover Formation Warns Of A Correction
  • Recovery Doubtful Despite Test of Key Support

The Australian Dollar’s retracement of its recent gains has yielded a Dark Cloud Cover formation, warning a further pullback for the currency. The bearish pattern is the third in the space of a month and may herald another decline to the range-bottom at 0.9320. However, some skepticism over the potential for further follow-through may be warranted given the choppiness of recent price action.

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

AUD/USD Dark Cloud Cover Offers Ominous Warning Near Range-Top

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. While the 0.9400 handle has seen some buyers emerge, the absence of bullish reversal signals casts doubt over a recovery.

AUD/USD: Teasing At Key Support With Reversal Signals Lacking

AUD/USD Dark Cloud Cover Offers Ominous Warning Near Range-Top

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Australian Dollar to Weigh 1Q CPI, China PMI as RBA Bets Evolve

  2. Forex News

    Video: Risk Reversal a Greater Danger Than Dollar Tumble Next Week

  3. Forex News

    Pound to Look Past Claims Data, US Dollar Set Sights on CPI Report

  4. Forex News

    AUD/USD Technical Analysis: Range Top at 0.79 Threatened

  5. Forex News

    Major Shift in Forex Trader Behavior Points to US Dollar Weakness

Trading Center