AUD/USD Still Below July 1 High; Watch Dips into Support

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eliottWaves_aud-usd_body_audusd.png, AUD/USD Still Below July 1 High; Watch Dips into Support

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “Pattern - the AUDUSD decline from the April high is mature and possibly complete in 5 waves. Wave 4 is from the 6/3 high (.9791). Wave 5 from that level is a diagonal and wave 5 of 5 is also a diagonal (and truncated). Momentum – downside momentum has slowed significantly. The lowest close for the entire move (7/5) was accompanied by an RSI reading above 30. Sentiment – speculative interests, as evidenced by COT, are extremely short.”

FOREXTrading Strategy: Wrote yesterday that I am “looking for a low tonight between .9063 and .9085.” We got the low at .9082 but the AUDUSD isn’t out of the woods just yet. Price needs to trade above .9252 in order to relieve divergence with NZDUSD (which is at a July high). Still, there is enough evidence to be bullish on dips into .9110/50.

LEVELS: .9085 .9109 .9150 .9252 .9329 .9400

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