FOREX Technical Analysis: AUD/USD Drifts Sideways Before RBA
Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: As traders eagerly await tonight’s RBA rate decision, the AUDUSD is little change. Rather than predicting the market’s response to tonight’s event, react to the reaction. “10550, the 9/14 reversal day close and 161.8% extension of 10287-10424, is a level that may produce the next top. It’s worth keeping in mind the longer term AUD/USD triangle, in which price probably declines towards parity or below in order to complete triangle wave E.” Of course, a negative reaction would probably test the trendline and 11/21 low near 10340. A bounce off of that level would present an opportunity to operate from the short side.
FOREXTrading Strategy: Shorting at 10550 or after a negative reaction and bounce.
LEVELS: 10287 10340 10375 10447 10490 10550