Australian Dollar Bullish Resolution Expected

Daily Bars

Prepared by Jamie Saettele, CMT

Recent AUDUSD action probably composes a 4th wave correction within the 5 wave advance from the 12/15/11 low.  The floor is strong as price is holding its Elliott channel (line parallel to waves 1-3 extended from wave 2), 20 day average, and February opening range.  Bullish objectives are the 2011 high at 11080, and common Fibonacci relationships.  Wave 5 = 1 at 11153 and wave 5 = 61.8% of waves 1-3 at 11236.  These levels intersect the channel on March 5th and March 9th.  I like longs on dips between 10715/40 with a stop under 10645.   

Bottom Line – Long, stop 10645, target above 11000

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