Tuesday, May 22, 2012

$AUDUSD: I'm watching 0.9665 - 0.9700

AUDUSD - Monthly chart
Although I'm on my self-imposed time out and then a family vacation for the rest of this month, I'm still following the markets with at least one eye.

Here's something interesting.  With AUDUSD continuing to drop like a rock, I wanted to take a look at a much higher timeframe to see if there's anything of interest.

Well look at that on the chart to the right, the 0.9665 level on the monthly chart seems to stand out going back years.

AUDUSD - Weekly chart

And 0.9665 seems to hold well even after you drill down to the daily or weekly timeframe.

What's also interesting is that the 0.9700 level is also the 78.6% level of the most recent swing low to swing high. 

It seems like the most interesting action lately has been taking place while I'm asleep, but while I'm awake, I'll be watching the price action around .9665 to .9700 level closely if it decides to get there. 

If the .9665 area holds and a bottoming formation and/or retest of the .9665 level takes place, that might indicate a short term bottom and long opportunity.

Otherwise, a decisive break of the .9665 area and a pullback/retest back up to that level may indicate an opportunity to short.

1 comment:

PRD trader said...

Hi,Nice blog,there is no reason for AUD to fall below the support,but in this market conditation any thing can happen.