AUDUSD—correction

My long at 1.0089 stopped at +10 as AUDUSD corrects. Price has broken below 1.0003 the old high that might have served as support and have touched a low of .9982 today. This doesn't mean catastrophe for this pair is at hand—it could find support at .9972 which would be .618 if the A wave if one assumes this is an ABC correction that began Oct. 15th. Equality would take it to a low of .9841 and 1.618 that of A would be .9630. The .9630 looks attractive since it's near .382 of the move from .8770 to 1.0183 and the 10/27 low.

If the pair can quickly regain 1.0003 (not just a touch and retreat), then I'll buy; otherwise I'm looking for a short entry.

Here's the three-hour chart on which things look a bit dicey:












© 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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