U.S. Markets closed

Australian Dollar Action Warrants Bearish Breakout Strategy

Jamie Saettele, CMT

FXCM Expo Videos

Innovative Techniques with Traditional Technical Indicators

Trading with the Elliott Wave Principle

Seeing the Forest from the Trees: An Analysis of Global Markets

Afternoon Technicals (all charts)

Other TA (crosses, COT, etc.)

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

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

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

To be added to Jamie’s e-mail distribution list, send an e-mail with subject line "Distribution List" to jsaettele@dailyfx.com

Jamie is the author of Sentiment in the Forex Market.

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.