AUD/USD False Breakout Spells Trouble

Daily

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-AUD/USD broke out on 10/19 (daily closing basis) but failed. The failed rally on 10/26 leaves little doubt about the ‘false’ move despite the fact that .7505 is the invalidation level for a proposed inverse head and shoulders pattern (continuation variety). The risk is that AUD/USD collapses under the 9/13 low in order to complete a flat pattern (sub-waves 3, 3, 5). .7460 is a technical level for a bounce (200 day average and closing lows since July).

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