Australian Dollar Action Warrants Bearish Breakout Strategy

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AUDUSD shorts were taken early in US trading (released via Twitter @JamieSaettele). I had been looking to short strength into 10340 but the post RBA bounce could only muster 10320. As long as price is below 10405, I'm looking towards parity (Fibonacci confluence is just below 10000) in what could be wave E of a long term triangle. Levels that may produce support along the way (for more active traders) are 10280, 10225, 10165 and 10100. 10330/40 is still expected resistance if reached.

The AUDUSD is already breaking supports but the NZDUSD is showing signs of exhaustion after last week’s Friday reversal (JS Spike). Price spiked above yesterday’s high early in US trading today before retracing about half of the day’s gains. A drop below 8264 would be the earliest sign that a tradeable top is in place.

AUDUSD – Daily Bars

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Australian_Dollar_Action_Warrants_Bearish_Breakout_Strategy_body_audusd.png, Australian Dollar Action Warrants Bearish Breakout Strategy

Prepared by Jamie Saettele, CMT

NZDUSD – 60 Minute Bars

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Australian_Dollar_Action_Warrants_Bearish_Breakout_Strategy_body_nzdusd.png, Australian Dollar Action Warrants Bearish Breakout Strategy

Prepared by Jamie Saettele, CMT

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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