Guest Commentary: Trading 'Frustration' can be very profitable! AUDUSD
* The sharp decline from below the 1.0470 resistance suggests the rally is over...for now.
* However, a likely 1.0180 target and trend support should contain weakness into next week for another attempt at the highs.
* As this rally, fades we will sell again...
The strong reversal from a 1.0440-45 equality target encourages the view that the Aussie has finished the first leg of the major three legged triangle recovery highlighted in the daily perspective below the strong 1.0470 resistance.
However we label the rally probably doesn’t make a lot of difference except that the steady un-dramatic rally comprising 3 waves in both directions does suggest a leading diagonal or wedge and therefore a strong corrective decline... a B wave.
As such the drop to 1.0240 23.6% is enough in the short term for 1.0240-1.0330 consolidation, 1.03330 being the former secondary high with a chance though to extend to channel support now at 1.0180 to complete the first leg of a larger corrective decline. However, either way the Aussie weakness should be limited for most of this week as it recovers to 1.0330-60 61.8%.
We will look to sell this strength again 1.0445 though for eventual break down to 1.0015 the 38.2% with potential for 1.0010 even 99.10 the 50-61.8%. A rally over 1.0445 though threatens to spike 1.0470 straight to 1.0600-80 the eventual major triangle objective.
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