Tanalys

AUD/USD Outside Day Allows Stop to be Lowered

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

AUDUSD covered the 9/13 close (.9243) last week and confirmed a head and shoulders top. The weak right shoulder suggests an exceptionally vulnerable market.

-Tuesday’s outside day allows bearish risk to be tightened to .9210. Exceeding that level would shift focus to .9250/67 (re-test of broken support).

Trading Strategy: The first target was hit at .9250. The stop on the remainder can be lowered all the way to .9210 now. Near term resistance is .9145/75. I’ll be looking to add to the position near that level. If stopped out, then re-entry may occur on a test of the just broken .9250/67 area. There is an AUDJPY opportunity as well.

LEVELS: .8978 .9013 .9069 | .9145 .9203 .9250

— Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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