June 3, 2008 19:06

Technical Analysis – AUD/USD Bounce Expected

Posted In: Technical Analysis
By:

6-3-08

19:08 GMT – AUD/USD got heavily sold off thanks in large part to the Fed’s comments about not letting the dollar get too weak. In the short-term, especially with the Dow still struggling to hold any gains I see support at .9510 holding strong against any attempts to break through it. There is also an RSI divergence on the 60M charts further supporting bulls for more gains.

Trading Idea: Long above .9510 with targets at .9540, .9570 and .95610.

Update: AUD/USD has made a clear break of .9510 without giving a bullish reversal candlestick above .9510. Signal is cancelled and we will look to sell on rallies.

Signal Review:  Got the bounce right just the placement wrong. Pair has made lower highs and lower lows for past few days and trend lines on below chart shows it is caught in a bearish channel. Missed that one. The bearish doji above support would have provided a nice entry point as well before a 90+ (so far) pip rise.

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