AUD/USD Set For Further Falls Following Bearish Candlestick Pattern

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • AUD/USD Technical Strategy: Shorts Preferred
  • Dark Cloud Cover pattern offered ominous warning
  • Harami pattern on four hour chart delivered declines

As suggested in the last candlesticks report, a Dark Cloud Cover pattern on the AUD/USD daily chart offered an ominous warning for a correction. A daily close below support at 0.9375 would open up the range-bottom near 0.9210.

AUD/USD: Reversal Signal Near 2014 Warns Of A Correction

AUD/USD Set For Further Falls Following Bearish Candlestick Pattern

Daily Chart - Created Using FXCM Marketscope 2.0

The Harami pattern near 0.9435 offered an early signal that Australian Dollar could pull back. With a bullish reversal signal yet to emerge the currency may struggle to recover ground over the session ahead.

AUD/USD: Recovery Looks Doubtful With Bullish Signal Absent

AUD/USD Set For Further Falls Following Bearish Candlestick Pattern

4 Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

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

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