Australian Dollar / US Dollar 03-31
Bigger picture - A diagonal can be counted as complete from 8800 and the break of 9090 inspires confidence in the downside. The diagonal from 8800 may complete wave C of an A-B-C correction from just below 8600. If this count is correct, then the entire advance (from 8600) will be retraced over the next several weeks. However, the rally from below 9000 is impulsive (5 waves), which suggests additional strength (following a correction). 9120-9080 is potential short term support. Do not dismiss the low ATR reading. 21 day ATR is at its lowest point since July 14, 2008; which is one day before the 2008 high.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades atDailyFX Forex Stream. Send requests to receive his reports via email to email@example.com.
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