Tanalys

AUD/USD Former Support Serves as Resistance

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The AUDUSD rally has stalled at the 78.6% retracement of the decline from the July high. A large range weekly key reversal last week supports a bottoming process but the current level is not the place to turn bullish. Daily RSI has recovered slightly above 50. Corrective rallies within larger downtrends often end when RSI reaches 50 or 60.” Higher RSI peaks with lower price peaks is indicative of a bear market. Current conditions are range and it’s not out of the question that a low is in place but a look at related pairs, particularly NZDUSD, suggest we stick with a larger bearish bias for now.

FOREXTrading Strategy: Market has responded to bottom of .9058-.9110 zone. Right place for a top but wary of selling in the middle of a range on swing basis. Intraday is a different story.

LEVELS: .8891 .8931 .9006 .9058 .9110 .9149

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