AUDUSD Repeating July Blowoff
Prepared by Jamie Saettele, CMT
“Taking today’s outside day reversal and shelf of RSI support shifts the weight of evidence to a higher high (above 10443).” Today’s action highlights the importance of outside days. The swings since the 2011 high compose a triangle. The NZDUSD pattern makes it more likely though that the triangle is not bullish but rather forming from the October 2011 low as wave B within an A-B-C decline from the 2011 high. Without getting into the nitty-gritty of wave structure within the advance from the 6/1 low, levels to consider for a top are 10475 (4/27 high), the line that extends off of the 7/5 and 7/19 highs (at 10513 Friday) and 10600 (extensions and 2/23 low). A drop below 10345 WITHOUT first exceeding 10422 would suggest that a top is in place.
LEVELS: 10315 10345 10370 10443 10475 10520
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