AUD/USD Approaching Trendline Resistance and Former Lows
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-The AUDUSD has declined for 9 consecutive weeks for the first time since 1982.
-Allowing for a bounce, 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 remain long AUDJPY (92.45 stop and 93.50 target).
LEVELS: .8770 .8820 .8884 | .8989 .9055 .9119
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com