AUDUSD—working out divergence

On the hourly chart, one can see a completed AB=CD pattern with a pullback to about the .618 of the A to D range. This comes after a positive divergence between price and RSI so I'd expect at least a slight rally. Price has overtaken the short-term resistance line and recent high of 1.0083. I went long at 1.0068 but don't have a lot of faith in it and have moved my stop to breakeven. We'll have to see how far it goes. Next resistance is 1.0137/58, then 1.0200.

Here's the hourly chart:












© Dianne Fecteau, 2011. 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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