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

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