AUD/USD Hurtles Towards Range-Bottom With Reversal Signals Lacking

By DailyFx | August 07, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Shorts Preferred
  • Absence of Bullish Patterns Casts Doubt On A Recovery
  • Dark Cloud Cover On H4 Offered Early Warning

The Australian Dollar’s recent plunge casts a bearish light on the currency with a void of reversal signals to suggest a recovery. A daily close below 0.9280 would set the stage for an extended decline to the range-bottom near 0.9210.

AUD/USD: Recovery Questionable With Bullish Candlesticks Lacking

AUD/USD Hurtles Towards Range-Bottom With Reversal Signals Lacking

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

A Dark Cloud Cover candlestick formation on the four hour chart offered an early warning of a retreat for the Aussie. Similarly to the daily timeframe, the absence of bullish reversal patterns leaves a recovery as questionable at this stage. A close above former support-turned-resistance at 0.9280 would be required to suggest an intraday bounce.

AUD/USD: Dark Cloud Cover Offered Ominous Warning

AUD/USD Hurtles Towards Range-Bottom With Reversal Signals Lacking

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.

Related Forex Analysis
  1. AUD/USD Doji Suggests Hesitation From The Bulls In Intraday Trade
    Forex News

    AUD/USD Doji Suggests Hesitation From The Bulls In Intraday Trade

  2. AUD/USD Technical Analysis: Waiting to Confirm Reversal
    Forex News

    AUD/USD Technical Analysis: Waiting to Confirm Reversal

  3. AUD/USD Slopfest Will Produce Next Trend Move
    Forex News

    AUD/USD Slopfest Will Produce Next Trend Move

  4. Australian Dollar Remains in Clear Downtrend
    Forex News

    Australian Dollar Remains in Clear Downtrend

  5. Ranges Persist in USD-Pairs Post-FOMC Meeting
    Forex News

    Ranges Persist in USD-Pairs Post-FOMC Meeting

Trading Center