Jamie's Pick: 08/13/12
Markets are quiet which is not new but relative weakness in the AUD has piqued my interest. An AUDCAD weekly key reversal last week may be a ‘tell’ that the AUDUSD path is lower as well. AUDCAD key reversals are in red on the first chart below. RSI failure before 70 and a potential head and shoulders top are also bearish. The sharpest (largest price change in shortest amount of time) tend to occur at turns. Since the AUDUSD has been trading sideways (triangle) since the 2011 top, trading turns is even more attractive. I am currently short from Friday (10520 entry) with a 10590 stop, which was just missed on Friday. A drop below 10435 would increase confidence in the short side.
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