AUDUSD – With daily signals for sentiment at overbought extremes, gains for the last 2 days have been rejected. This ‘lines up’ with levels above 1.0265, 161.8% extension level (from .9581-1.0005). The expected move lower could be choppy as the move is assessed as being corrective. The pair is now trading outside yesterday’s Value Area 1.0251-1.0278 (Market Profile). As long price stay under 1.0280, our bias is mildly bearish. In view of these facts our call today is baeris below 1.0280.
The profit targets are 1.0211, then 1.0198, 2nd July low, then 1.0142.
The risk to this call is that the selloff was a temporary one and this would be signalled by a move above 1.0280, outside the Value Area.