AUD/USD Outside Day Allows Stop to be Lowered

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eliottWaves_aud-usd_1_body_Picture_8.png, AUD/USD Outside Day Allows Stop to be Lowered

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

-AUDUSD covered the 9/13 close (.9243) last week and confirmed a head and shoulders top. The weak right shoulder suggests an exceptionally vulnerable market.

-Tuesday’s outside day allows bearish risk to be tightened to .9210. Exceeding that level would shift focus to .9250/67 (re-test of broken support).

Trading Strategy: The first target was hit at .9250. The stop on the remainder can be lowered all the way to .9210 now. Near term resistance is .9145/75. I’ll be looking to add to the position near that level. If stopped out, then re-entry may occur on a test of the just broken .9250/67 area. There is an AUDJPY opportunity as well.

LEVELS: .8978 .9013 .9069 | .9145 .9203 .9250

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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