AUD/USD Remains a Sell on Strength after Reversal Follow Through
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Automate trades with Mirror Trader
-Last Wednesday’s AUDUSD 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 (pennant?) and price is below the support line.
-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.
-10/23 volume (CME futures) was the highest since 9/18, which was a short term top.
Trading Strategy: Was triggered short at .9505. However, I’m not comfortable being short with NZDUSD at a low for the month and AUDUSD now. A corrective advance may begin from nearby levels (or now) in which case we’ll look to identify a secondary top (former support at .9570 is of interest as resistance but back to .9620 is possible).
LEVELS: .9301 .9390 .9465 | .9515 .9545 .9570
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