Australian Dollar / US Dollar 05-26
I wrote yesterday that “the latest drop (to a new low) may complete a small 5th wave. Consolidation in a 4th wave could result in the pair trading back to 8300 over the next several days. Bottom line – the trend is down and corrections should be sold.” The AUDUSD is already back to 8300. 8440 is potentially strong resistance. This is the 38.2% retracement of the decline from 9084 and the 100% extension of the latest advance. The level is reinforced by channel resistance as well.
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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