eliottWaves_aud-usd_1_body_Picture_8.png, AUD/USD Dips into Range Lows ahead of Employment

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

-AUDUSD formed an outside day reversal on Friday.

-“The drop to a new low after NFP appears to have completed 5 waves down from the 12/2 high. A complete retracement of that decline would return price to the ‘former 4th wave’ at .9167. In general, .9167-.9203 is resistance.” Price reached .9167. A larger bottoming remains possible as long as Friday’s low is in place.

-A re-test of the breakdown level from the head and shoulders top at .9267 is possible as well.

Trading Strategy: Larger trend is still down but I am flat at the moment after being trailed out of a month long short position at .9080 on Friday. If price breaks to new lows, then I will have missed re-entry but there is an uncovered close to keep in mind from 8/30 at .8902. Finally, a decline this week will make 8 consecutive weekly drops. According to my data, that hasn’t happened since 1986!

LEVELS: .8902 .8989 .9029 | .9103 .9148 .9203

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com