AUD/USD Rebounds after Test of 8/22 Low; Market in Range

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eliottWaves_aud-usd_body_audusd.png, AUD/USD Rebounds after Test of 8/22 Low; Market in Range

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.” Higher RSI peaks with lower price peaks is indicative of a bear market. Current conditions are range and it’s not out of the question that a low is in place but a look at related pairs, particularly NZDUSD, suggest we refrain from the long side.

FOREXTrading Strategy: Flat

LEVELS: .8847 .8891 .8931 .9026 .9058 .9110

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