AUDUSD: Remain Short as Risky Assets Falter

Published June 19th, 2009 - 02:05 GMT
Al Bawaba
Al Bawaba

My picks: Remain Short AUDUSD
Expertise: Global Macro, Classic Technical Analysis
Average Time Frame of Trades: 1 week - 6 months



I sold AUDUSD at 0.7896 as prices broke support of a rising channel after showing a Bearish Engulfing reversal pattern. Since then, prices have corrected higher and now look to be setting up a double top, with the bearish bias bolstered by negative divergence o the RSI oscillator. Remain short, continuing to target a decline to the previous swing bottom at 0.6949. A stop-loss will be activated on a daily close above the 06/03 wick high at 0.8269.

For detailed analysis of all the major currency pairs, please see my weekly technical outlook report.