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FOREX Technical Analysis: AUD/USD Spikes above Trendline but Closes Beneath

By , Sr. Technical Strategist
12 December 2012 22:44 GMT

Daily Candles

eliottWaves_aud-usd_body_audusd.png, FOREX Technical Analysis: AUD/USD Spikes above Trendline but Closes Beneath

Chart Prepared by Jamie Saettele, CMT

FOREXAnalysis: “10550, the 9/14 reversal day close, is a level that may produce the next top. It’s worth keeping in mind the longer term AUD/USD triangle, in which price probably declines towards parity or below in order to complete triangle wave E.” In typical ‘exhaustion’ fashion, the AUDUSD traded through its 14 month trendline (drawn off of 11080 and 10855) before closing beneath the line and right at 10550. The market clearly views the trendline and 10550 (which was the closing day of the last top on 9/14) with utmost concern.

FOREXTrading Strategy: It is FINALLY time to fight the rally. 10563 is resistance. A drop below 10520 would increase confidence that a top is in until at least 10460.

LEVELS: 10440 10470 10522 10585 10624 10732

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12 December 2012 22:44 GMT