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AUD/USD Second Consolidation offers High Reward to Risk

By , Sr. Technical Strategist
14 November 2013 20:31 GMT

Daily

eliottWaves_aud-usd_body_audusd.png, AUD/USD Second Consolidation offers High Reward to Risk

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

-Bigger picture, the market broke from a symmetrical triangle the week that ended 5/17/2013. The recent top is just pips from that close level (with an outside day reversal on 10/23) and right at channel resistance.

-The advance from the August low is defined by converging lines (pennant, common in bear market advances).

-The market is probably consolidating before the next leg down. The first consolidation within the move from the Oct high took 4 days (11/1-11/6). Tomorrow will be the 4th day of this consolidation.

Trading Strategy: “Currently short. Original stop was .9550. Stop has been lowered to .9475. The 9/13 uncovered close is at .9241 so target half at .9250.” .9390 is still resistance.

LEVELS: .9190 .9240 .9290 | .9340 .9365 .9390

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14 November 2013 20:31 GMT