AUD/USD Dark Cloud Cover Delivers Dip To 0.9280 Floor

Talking Points

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  AUD/USD Technical Strategy: Sidelines Preferred
  


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  Dark Cloud Cover Yields Correction To Key Support
  


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  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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AUD/USD Dark Cloud Cover Delivers Dip To 0.9280 Floor