AUD/USD Bottoming Process Underway as Event Risk Looms

DailyFX

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eliottWaves_aud-usd_body_audusd.png, AUD/USD Bottoming Process Underway as Event Risk Looms

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Record positioning and a major technical level add up to potential for at least sharp short squeeze. The major technical level is the 2011 low (.9387), April 2010 high (.9387) and November 2009 high (.9405). 5 waves down from the April high are evident and a diagonal (wedge) may be complete from .9791. In the event that the Tuesday low doesn’t hold, keep in mind a gap that remains open from September 2010 at .9263/76.

FOREXTrading Strategy: The risk is certainly higher but employment is tonight…the environment is perfect for a rally back towards .9800 but there could be a lot could happen on the news release and I don’t like taking a stand before then.

LEVELS: .9263/76 .9325 .9432 .9600 .9673 .9748

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