Australian Dollar / US Dollar 05-14
I am of the mind that the commodity currencies are about to take the lead from the European currencies as it pertains to bearing the brunt of dollar strength. Stay focused on the potential double top with the November 2009 high at 9400. The AUDUSD has plunged below its year + channel and 13 week SMA and the next level of interest on the downside is the February low at 8575 (below there confirms the double top). If 8575 is broken, then the objective would be 7700, which is the July 2009 low as well as where the decline from 8571 would equal the 9411-8571 decline (double top measuring technique). Price ideally stays below 9030 but I am not tightening risk yet for fear of being whipsawed prior to the expected plunge.
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 at DailyFX Forex Stream. Send requests to receive his reports via email to email@example.com.
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