Chart of the day: AUD/USD

Blake Morrow Forex Analytix

If you listen to the daily free F.A.C.E. (Forex Analytix Community Experience) webinar daily, you know that the AUD/USD has been on the radar as a short since last week at the .7850's from last week as we have been stalking this long term head and shoulder pattern. Now that we are back near the .7600 level neckline, it is important to know that there is a lot of possible downside for the pair as the rally in equities (globally) has diverged from the AUD/USD as of a few weeks back. That lack of upside could allow for some near term sellers to step in to the .7400 level and ultimately near the .7200 level to complete the head and shoulder pattern. With the long term trend of commodities looking to turn higher, we'd think that dips below the .7200 level would offer a great opportunity for fresh, long term long positions.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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