The gap left open from 11/28/11 at 9773 has been filled and given way to an AUDUSD correction. Near term support is 9815 and resistance is expected in the 9935/65 region. Having bounced nearly 200 pips from the low, medium term players should be looking to short above 9900. Shorter term nimble traders may wish to trade from the long side towards the mentioned levels.
The strong reaction off of the December low is textbook. Like the AUDUSD, medium term traders should look for shorts near 7675 resistance. Short term traders may wish to trade higher towards that level with 7580 as support. “It’s best to keep the former base channels on your charts. The underside of these lines tends to act as resistance as time passes.”
