Stock Market Action Dictates AUD USD Movement

Firm overnight equity markets helped boost the AUD USD before the opening, but the inability of theindices go through last week’s highs with conviction encouragedselling in the Australian Dollar in front of the June top at .8264.

Daily Analysis

AUD USD

Firm overnight equity markets helped boost the AUD USD before the opening, but the inability of the indices go through last week’s highs with conviction encouraged selling in the Australian Dollar in front of the June top at .8264.

Weakness in the equity indices throughout the day should lead to more profit-taking pressure in the Aussie.  A closing price reversal top in the stock indices is likely to help form a similar reversal top in the AUD USD.  A close under .8171 will create this formation and could trigger the start of a break to at least .7981 over the short-term.

Bullish traders have to be careful about initiating a new position or adding to an existing position over .8264 because of the Fibonacci retracement number at .8382.  The set-up may lure you in on the daily and set you up on the weekly/monthly chart.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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