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

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

    April Forex Seasonality Foresees Weakest Month of Year for USD

  2. Forex News

    USD in Holding Pattern as Calendar Turns to April, Q2

  3. Forex News

    AUD/USD Technical Analysis: March Bottom Back in Play

  4. Forex News

    Trading Video: Dollar and SPX Rallies Break Records, Greece Standoff Troubles Euro

  5. Forex News

    Euro, Aussie Dollar May Rise as Yen Falls on Greece Funding Deal

Trading Center