Australian Dollar Decline Viewed as Buying Opportunity
Prepared by Jamie Saettele, CMT
The AUDUSD decline, although sharp, is viewed as a corrective 4th wave. I wrote yesterday that “there is room for weakness towards channel support (10600 Tuesday) and the 20 day average (10640 on Tuesday). Expectations are for bulls to take back control and propel price to a new high (above 10844) in order to complete the 5 wave structure from the December low. A cluster of Fibonacci objectives come in near the July high at 11080.” After dipping to 10628, the AUDUSD has recovered and is back near 10700. Look higher from here.
Bottom Line – Long, stop 10565, target open
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.