AUD/USD Rallies…Then Falls Apart
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
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FOREXAnalysis: It looks like the ‘short squeeze’ I was looking for is going to come from lower levels. To recap - “Record positioning and a major technical level add up to potential for at least sharp short squeeze. The major technical level is the 2011 low (.9387), April 2010 high (.9387) and November 2009 high (.9405).” The AUDUSD rallied into FOMC but fell apart afterwards. Extensions of the recent range project .9114 (161.8%) and .8984 (200%).
FOREXTrading Strategy: Was stopped out of longs today. Flat for now…have to look lower at this point but risk is too large to participate from here.
LEVELS: .8774 .8984 .9114 .9340 .9380 .9433