AUDUSD—Correcting

AUDUSD finally had a little drop overnight. At .9556 it took out the remainder of my long from .8913 for a profit of 643 pips. So far the pair has dropped to .9542 from a high Friday of .9750. As I wrote yesterday, the pair has been in a range between .9625 and .9750 since Sept. 29th. So this is the first probe below this range and below the Sept. 28th low of .9560.

I'd expect to see support at .9417/07, then 9377, the .382 retracement of the advance from .8770. This zone makes for strong support. Additional support is at .9330, .9213 and .9126.

The three-hour candle that is currently forming is an outside candle (price higher and lower than the prior candle). So there's some indecision out there. I will most likely look at any dip as a buying opportunity but I'll keep studying the chart. Ideally it would get lower than where it is now.

Here's the three-hour 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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