AUDUSD—paralyzed

This pair appears to not have a clue as to what to do. For Thursday, Friday, and Monday AUDUSD had lower highs and lower lows. Yesterday, it managed to not go to a lower low. It also managed to pull off a higher high. This higher high was at .9198, a whopping 11 pips higher than Monday's high. The last four days comes after tepid, sideways movement since March 7. The pair looks congested at best and may be setting up for a correction. I shorted at .9185 with the stop being just better than breakeven.

You can see on the daily chart below that the pair looks as though it's weakening a bit with its inability to make a major new high. However it needs to break down below .9080 to suggest it can drop further.

Support is at .9080, .8979/90 (strong), .8914 (strong), .8801, and .8578. Resistance is at .9252, .9330, and .9406.

Here's the daily chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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