AUD/USD Big Picture Downside Potential is Plenty
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-Barring a Friday close above .8967, the AUDUSD will have declined for 9 consecutive weeks for the first time since 1982.
-There is plenty of downside potential. Minor supports come in from .8632 and .8770 but the next major support isn’t until .8068.
Trading Strategy: The goal is to return to the short side on a failed rally into resistance. In general, .8970-.9055 is resistance. Watch for these levels to intersect trendlines that extend off of the Oct and Nov 20 highs as well as the Nov 20 and Dec 10 highs. I am currently long AUDJPY (entry 92) with a 91 stop and 93.50 target.
LEVELS: .8632 .8770 .8803 | .8884 .8946 .8989
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.