AUD/USD Range May Remain As Dark Cloud Cover Rolls In

By DailyFx | September 01, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Sidelines Preferred
  • Dark Cloud Cover To Warn Of A Retreat If Confirmed
  • Awaiting Break of Narrow Band to Offer Clearer Signals

AUD/USD’s retreat from the 0.9370 hurdle has generated a Dark Cloud Cover formation. If confirmed by a successive down-day the reversal pattern may herald a retest of the 0.9280 floor. This could offer a short-term range-trading opportunity. Yet the juice left to squeeze appears somewhat limited. This leave awaiting a break of the pair’s narrow corridor preferred.

AUD/USD: Range May Remain As Dark Cloud Cover Emerges

AUD/USD Range May Remain As Dark Cloud Cover Rolls In

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

As noted in the last candlesticks report, the four hour chart offered an early warning of a correction. The Bearish Engulfing formation signaled the potential for a pullback near the 0.9370 barrier. However, the bears appear to have lost steam in intraday trade as denoted by a Doji candlestick near 0.9327.

AUD/USD: Bearish Engulfing Pattern Warned Of An Intraday Correction

AUD/USD Range May Remain As Dark Cloud Cover Rolls In

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

    Forecast: Will Dollar and Equity Declines Evolve into Reversals?

  2. Forex News

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

  3. Forex News

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

  4. Forex News

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

  5. Forex News

    AUD/USD Technical Analysis: Range Top at 0.79 Threatened

Trading Center