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FOREX Technical Analysis: AUD/USD Triggers Bearish Inside Day Trade

By , Sr. Technical Strategist
18 December 2012 23:56 GMT

Daily Bars

eliottWaves_aud-usd_body_audusd.png, FOREX Technical Analysis: AUD/USD Triggers Bearish Inside Day Trade

Chart Prepared by Jamie Saettele, CMT

FOREXAnalysis: The AUDUSD has traded at long term trendline resistance for 5 consecutive days. “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.” Today’s break of the inside day at resistance triggers a bearish bias. COT data reveals a sentiment extreme.

FOREXTrading Strategy: Shorts are favored against 10585. The stop should be moved down to 10560 if price breaks below 10508. Initial support is 10466 but the first objective isn’t until the 61.8% retracement of the advance from 10148, at 10315. This level is straddled by the 50% and 61.8% extensions of the 10624-10148 decline (10347 and 10291).

LEVELS: 10393 10466 10508 10585 10624 10732

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18 December 2012 23:56 GMT