Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-AUDUSD formed an outside day reversal on Friday.
-The drop to a new low after NFP appears to have completed 5 waves down from the 12/2 high. A complete retracement of that decline would return price to the ‘former 4th wave’ at .9167. In general, .9167-.9203 is resistance.
-A re-test of the breakdown level from the head and shoulders top at .9267 is possible as well.
Trading Strategy: Larger trend is still down but I am flat at the moment after being trailed out of a month long short position at .9080. Short term support is estimated at .9065. .9200 may be the level to think about turning bearish again.
LEVELS: .8989 .9019 .9064 | .9121 .9167 .9203
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com