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AUD/USD Breaks to 2013 Lows; Big Move Underway

By , Sr. Technical Strategist
09 May 2013 23:42 GMT

Daily Bars

eliottWaves_aud-usd_body_audusd.png, AUD/USD Breaks to 2013 Lows; Big Move Underway

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote yesterday that “the AUDUSD has broken the trendline that extends off of the 2012 and 2013 lows. Strength into 1.0208/20 would present an opportunity to short with a stop above the high of the breakout day (Tuesday) of 1.0253 for a break below 1.0114 and potential extension much lower. A break below 1.0114 and extension equal to the size of the 1.0114-1.0624 range yields a target of .9605 (close to the 2012 low). Levels of interest before then are Fibonacci confluences at .9980 and .9800. The shallow bounce into 1.0207 portends a weak market and suggests the next bear leg is sooner rather than later.” The break came today. Consolidation may be in order for 1-2 days but focus is on mentioned levels. 1.0110/30 is resistance.

FOREXTrading Strategy: Stay short, increase size at 1.0110/30 and decrease size at .9980. This is the time to consider an automated breakout strategy.

LEVELS: .9900 .9970/80 1.0045 1.0110/30 1.0178 1.0355

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09 May 2013 23:42 GMT