eliottWaves_aud-usd_body_audusd.png, AUD/USD Slammed Back into Range after False Break

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: I focused on the importance of .9240/60 in yesterday’s comments. Despite the insanity of Wednesday’s event driven trading, the zone held up well as a pivot. After the false break through .9300, the drop paused at .9245. Once that level went, price fell like a rock. Structurally, everything since 6/24 is corrective (I won’t speculate on the pattern). It’s too early to tell if corrective trading ended today though.

FOREXTrading Strategy: The false break reinforces the idea about the AUDUSD correcting its momentum and sentiment primarily through time and also that the bigger trade is probably still short. That doesn’t mean short in the middle of a range though! Estimated resistance is .9222/50.

LEVELS: .9048 .9085 .9120 .9222 .9250 .9317