Nov 10 (Reuters) - AUD/USD may be setting up a bullish reversal after a prolonged slide, with a harami pattern taking shape.

A potential bullish harami candlestick pattern might be forming on the daily chart after a sustained AUD/USD downtrend. A large black (bearish) candle pushed price lower, and a smaller white (bullish) candle followed, opening and closing within that large body. This suggests selling pressure may be fading.

A daily close above the 0.6942 high of the large black candle would support a reversal, as would a break and close above the 0.6945 Fibonacci level, a 23.6% retrace of the 0.7238 to 0.6855 (September to November) drop. That would unmask the 0.7001 Fibonacci level, 38.2% of the same 0.7238 to 0.6855 fall.

AUD/USD held on to gains on Tuesday as a plunge in oil prices fuelled a rally in risk assets, although a string of weak survey results painted a bleak outlook of the Australian open and export-heavy economy. A break below the recent 0.6855 low would invalidate the harami pattern.
Daily Chart

(Martin Miller is a Reuters market analyst. The views expressed are his own)