Australian Dollar Reverses Near 61.8% of Recent Rally
Prepared by Jamie Saettele, CMT
There are 2 counts to follow in the AUDUSD – one bullish and one bearish. Unfortunately, there is no way to know which one is correct until after the fact. The bullish count is shown above in which the decline into 10390 completed a corrective 4th wave. The implications are for a 5th wave rally that ends above 11011. The top side of the former support line is also potential support. Do not dismiss the bearish count in which the rally to 10789 completed a flat. Resistance is at 10654/80. Clearly, the pair is at a crossroads.
Trend Strength (M,W,D) – 1, 0, 0
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market. Send requests to receive his reports via email to email@example.com.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.