Jamie's Pick: 06/13/12
“I’m still playing the risk on/off waves through the AUDUSD. I’m bearish but less so on weakness and more so on strength. Trade with the larger trend but decrease size on weakness at support and increase size on strength at resistance. If the Sunday night high doesn’t hold, then I would not be involved in the short side. Focus would shift to resistance between 10085 and 10140.”
At the current juncture, one must consider a bullish triangle from the 6/7 high. Even under this scenario, the AUDUSD would trade lower into 9880-9915 before finding support.
I initiated a EURUSD short this morning at 12540 (as per Twitter @JamieSaettele). Short term resistance extends into 12590 but the pop on retail sales into congestion and the 50% retracement of the decline from 12667 was enough for me to go short. A loose target for the EURUSD is 12385-12410.
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Jamie is the author of Sentiment in the Forex Market.
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