Talking Points
- AUD/USD Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Yields Correction To Key Support
- Awaiting Break of Narrow Band to Offer Clearer Signals
AUD/USD is left at a critical juncture as the pair threatens a push below the 0.9280 floor, which follows the emergence of a Dark Cloud Cover pattern. A daily close below the barrier would open a run on the 0.9210 mark. Yet the juice left to squeeze appears somewhat limited. This leave awaiting a break of the pair’s narrow corridor preferred between 0.9210 and 0.9500 preferred.
AUD/USD: Range May Remain As Dark Cloud Cover Emerges
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. An absence of bullish reversal signals casts some doubt over the potential for a recovery. Yet the downside may be limited given the proximity of current prices to the 0.9280 hurdle.
AUD/USD: Bearish Engulfing Pattern Warned Of An Intraday Correction
4 Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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