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Short AUD/USD @1.0005
Written by article default Tuesday, 02 November 2010 12:48
Longer-term cyclical studies continue to warn of a near-term top in the pair, and we have once again established a counter-trend short position following the latest break above parity. While we are not sure at this point whether the market has indeed found the top, intraday studies suggest that our entry is most ideal over the shorter-term, with the daily ATR having already been met and our short triggering at an hourly RSI reading well above the super overbought 80 level. From here, we will look to see if the market can’t carve out a much needed intraday bearish reversal that will build into a more meaningful pullback on the daily chart. A break back below 0.9795 will now be required to relieve topside pressure and strengthen bias. POSITION: SHORT @1.0005 FOR AN OPEN OBJECTIVE; STOP 1.0115.Click here to learn more about DailyFX.