AUD/USD Has Yet to Follow Through on Outside Day Reversal

DailyFX

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eliottWaves_aud-usd_body_audusd.png, AUD/USD Has Yet to Follow Through on Outside Day Reversal

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-Wednesday’s 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 as well (pennant?).

-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.

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

Trading Strategy: Market has yet to break .9510 and NZDUSD remains a better option as per a constructive AUDNZD. Monitor EURAUD for a long on weakness as well.

LEVELS: .9528 .9567 .9590 | .9643 .9670 .9697

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