Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Yesterday’s large volume (CME) proved to be the beginning of exhaustion…beginning because the AUDUSD traded down to meet the objective derived from the 1.0624-1.0114 range before reversing sharply. The reversal is probably the beginning of a rally (4th wave) into .9840. .9840 is the Tuesday high and underside of the trendline that extends off of the 2011 and 2012 lows AND former channel (red). The parallels between this year and last year remain striking (a low was made last year on 5/23 which led to a 4th wave rally and final low on June 1).
FOREXTrading Strategy: Depends on your timeframe…short term traders can look for longs off of .9700 would be quick to tighten stop to breakeven given larger downtrend and 4th wave structure…which can be choppy. Swing traders, expecting resistance at .9840 to resell. Twitter @JamieSaettele will update position as always.
LEVELS: .9593 .9656 .9700 .9750 .9841 .9918
- Basic Materials Industry