AUDUSD Rips into Bottom of Resistance Zone

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Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

I was on point Monday with the analysis but went against it yesterday by going short the AUDUSD ahead of GDP. The loss wasn’t what bothered me as much as the exiting of a well thought out NZDJPY long at 5960 (we got to 6060 just now)! Such experiences highlight the major difference between analysis and trading. The latter is a far more psychological exercise. It’s worth reviewing Monday’s note because we are nearing levels that are probable resistance.

“Volume spikes (on futures) and daily key reversals (CHFJPY, EURJPY, EURUSD, NZDUSD and USDCHF) suggest that a larger corrective move is probably underway. The implications are for USD and JPY weakness, strength in stocks and commodities, and weakness in US Treasuries. As written Friday, keep it simple; identify key levels and know what you’ll do when those levels are reached.”

The AUDUSD and NZDUSD in particular are at levels of interest…the Yen / US yield story that we’ve followed for months is playing out beautifully but does face short term resistance here…the S&P (futures) are up 1% this morning and nearly 40 handles off of the low.

AUDUSD 240 Minute Bars

Prepared by Jamie Saettele, CMT

The AUDUSD has reached resistance from former support (5/16 low) and short term channel resistance. Additional resistance comes in at the 5/22 high and 100% extension of the low at 9934. 9800/25 is support today.

New Zealand Dollar 240 Minute Bars

Prepared by Jamie Saettele, CMT

The NZDUSD has reached resistance from the 5/29 high and short term channel resistance. Additional resistance comes in at the 5/22 high and 100% extension of the low at 7668//76. 7590-7600 is support today.

SPX 500 240 Minute Bars

Prepared by Jamie Saettele, CMT

The S&P has reached resistance from the 1300 area. The first wave of a larger 3 wave correction appears to be nearing completion. Support today is 1286-1290.

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.