AUD/USD Following Through on Bearish Reversal

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eliottWaves_aud-usd_body_audusd.png, AUD/USD Following Through on Bearish Reversal

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-Last Wednesday’s AUDUSD outside day reversal is consistent with the AUDUSD transitioning from an uptrend to something else (sideways or downtrend). The rally from the August low consists of 2 converging lines (pennant?) and price is below the support line.

-Bigger picture, the advance reversed in the vicinity of the June high (.9791), 2008 high (.9849) and at the channel that originates from the October 2012 low. This is a good place for a top.

-10/23 volume (CME futures) was the highest since 9/18, which was a short term top.

Trading Strategy: Market has broken .9510 which makes it a sell on strength against .9625. Orders to short in halves at .9505 and .9540. Target half at .9305.

LEVELS: .9301 .9390 .9457 | .9504 .9545 .9570

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