The AUDUSD has broken above its 5 month resistance line and focus is now on the January high at 9330 and then the 2009 high of 9411. Fibonacci objectives are 9363 and 9509 (100% and 161.8% extensions of the 8985-9221 advance). However, beware that 21 day ATR is at its lowest since the July 2008 top. This low level of volatility indicates complacency and the potential for a reversal. The pivot level is 9161 (below there would increase the probability of a reversal). Until a drop below there, respect upside potential.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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