Daily Bars

eliottWaves_aud-usd_body_audusd.png, AUD/USD Breaks Corrective Channel Support

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The slow arduous rally from just above the trendline that extends off of the 2012 and 2013 lows may be the beginning of a move back into 1.0400. In fact, the AUDUSD might be lagging the NZDUSD. The sharp declines from the highs may be announcing larger downtrends but there is room for a move higher from here to complete a flat correction from the 4/15 low. A rally into 1.0400/47 could accompany a last gasp high in stocks too. It’s certainly possible of course that the AUDUSD tops before 1.0400/47 given the presence of channel resistance.” The break below channel support suggests that a top is in place. The underside of that line is now potential resistance.

FOREXTrading Strategy: Short between 1.0300 and 1.0315, stop 1.0390, target open

LEVELS: 1.0194 1.0261 1.0305 1.0396 1.0447 1.0500