AUDUSD—retest of channel line

On the daily chart AUDUSD has returned to the channel line it broke above last Thursday, currently 1.0079. So one could try a buy here or somewhat below at 1.0041 (Thursday's low). Risk reward is good with a tight stop (just below 1.0003, the prior swing high) and potential up to 1.0333 (7/82 high and 1.0435 (4/82 low). The pair could be just working out the negative divergence on the daily chart with a correction. However, consistent closes on an hourly basis lower within the channel, especially below 1.0003, would signal a deeper correction is in store. I'd be ready to short at that point.












© 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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