AUDUSD into Support While Yen Awaits Bank of Japan
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I wrote yesterday regarding the AUDUSD that “several days of congestion are probably underway in the AUDUSD after the test of the August high washed out a crowded group of shorts. Initial support is 10487 but a test of 10400/26 (preferably on a reaction to news tonight) would present an opportunity to buy a dip against 10320 for upside continuation through month end.”
This morning’s low is at 10410 (so far). It is possible that the decline from above 10600 composes wave a of an a-b-c correction or even an impulse, therefore it’s important to minimize risk as soon as possible. I’ll move the stop to breakeven if price trades above 10485.
The Bank of Japan rate decision is tonight. From the Daily Technicals – “I maintain that the USDJPY drop on 9/13 completed a terminal thrust from a triangle. The minimum objective is the top of the triangle at 8061 although interruptions are to be expected along the way, specifically 7903, 7965, and 8009. 7802/46 is now support. I’m bullish on dips into mentioned support against 7750.” The decline from 7892 is in 3 waves (corrective) and qualifies as a dip. Look higher.
AUDUSD – Daily Bars
Prepared by Jamie Saettele, CMT
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