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AUD/USD Path of Least Resistance is Towards .9300

Jamie Saettele, CMT


eliottWaves_aud-usd_body_audusd.png, AUD/USD Path of Least Resistance is Towards .9300

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-AUDUSD 10/23 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 and price is below the support line.

-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.

Trading Strategy: Shorted the break after Aussie employment last night. Stop is .9550 and target is .9300. .9225-.9300 is an area to expect consolidation. AUDJPY is setup for a short. A GBPAUD bullish breakout is valid above 1.6860 (see EURUSD section for EURAUD).

LEVELS: .9320 .9388 .9420 | .9470 .9510 .9542

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