July 31, 2008 05:28

Technical Analysis – AUD/USD More Losses Ahead

Posted In: Technical Analysis
By:

7-31-08

4:26a GMT – AUD/USD has dropped about 80 pips since my last AUD/USD forex signal, and I think that those losses will continue. Pair is still trapped in an extremely bearish channel (yellow lines below). The biggest threat to the trade is an oversold 60M and 4H RSI and close to it on the daily charts. I would look for something of a bounce to cool off the oversold levels possibly to 0.9475 or even 0.9550 if the US stocks crash tomorrow. If no breaking news comes out a horizontal movement could occur as traders take profit before the weekend.

Trading Idea: Shorts favored below 0.9550 with targets at 0.9475, 0.9425 and 0.9355.

(click to enlarge)
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1 Comment on "Technical Analysis – AUD/USD More Losses Ahead"
  1. Avatar of piphut
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    July 31, 2008 at 17:13
    piphut says:

    Thanks for the feedback and compliments.

    Happy pipping,

    Mark

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