AUD/USD Setting Up to Buy the Dip
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: To recap; “Record positioning and a major technical level add up to potential for at least sharp short squeeze. The major technical level is the 2011 low (.9387), April 2010 high (.9387) and November 2009 high (.9405). 5 waves down from the April high are evident and a diagonal (wedge) may be complete from .9791.” Diagonals are often retraced so look towards .9791 although we need to pay attention to the 5/23 big volume day / reversal day close at .9745. Expect support in the .9431-.9480 zone. The 61.8% retracement of that advance from .9325 is in the center of that zone at .9455.
FOREXTrading Strategy: Order to go long at .9435, stop .9320, target .9745
LEVELS: .9324 .9431 .9480 .9673 .9745 .9791
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.