AUD/USD Outside Day Reversal

DailyFX

4Hour

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.
eliottWaves_aud-usd_body_audusd.png, AUD/USD Outside Day Reversal

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The AUDUSD rally has stalled at the 78.6% retracement of the decline from the July high. A large range weekly key reversal last week supports a bottoming process but the current level is not the place to turn bullish. Daily RSI has recovered slightly above 50. Corrective rallies within larger downtrends often end when RSI reaches 50 or 60.” Even if the rally from .8847 is the beginning of a larger rally, one would expect a deep setback (as is often the case at big turns).

FOREXTrading Strategy: No longer short after spike above .9225 but the outside day reversal is consistent with a deeper setback.

LEVELS: .8997 .9058 .9082 .9159 .9220 .9251

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