AUD/USD Outside Day Reversal Warns of Emotional Top
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
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-Wednesday’s outside day reversal is consistent with the AUDUSD transitioning from an uptrend to something else (sideways or downtrend). The rally from the August low consists of 2 converging lines as well (pennant?).
-Bigger picture, the advance reversed in the vicinity of the June high (.9791), 2008 high (.9849) and at the channel that originates from the October 2012 low. This is a good place for a top.
-Volume (CME futures) was the highest since 9/18, which was a short term top.
Trading Strategy: Weakness under .9510 would put me in sell rally mode. Until then, I still think one is better off long EURAUD (which broke trendline resistance today).
LEVELS: .9498 .9528 .9567 | .9643 .9678 .9697
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