After the move higher started at the end of January, AUD/USD has now confirmed the start of a move lower.
With price piercing the 0.9357 level on the downside, the sequence of measured move higher witnessed in the daily in the last few months, it is my opinion that AUD/USD is ready to move lower.
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AUD/USD could be now start moving into 0.9060†– April 16th 2014
Algorithmic trading could now create an opportunity to allow starting new position shorts. That would happen if price was pushed into the 0.9390 area. In that case a potential short could take place from those levels with a stop above highs (remember to always mind risk first, in this case it would be of around 70 pips).
The FibStalking technique has confirmed shorts (note: more on the FibStalking technique on the next April 22nd FXStreet Webinar) and there is no requirement for price to retrace into 0.9390 and, if that happens, I would consider that a present from the market, to be traded short.
If the trade short works, traders and algorithms could bring price into a first target at 0.9070. This could happen before price pierces recent highs again.
If you would like to watch a recent review I recorded on April 15th, 2014 (where I also covered GBP/USD, USD/CAD and NZD/USD), you can review this video: http://youtu.be/aCdGuXUtWNU
The potential trade for AUD/USD is:
DATE ORDER ENTRY SL TP1
Apr 16 SELL LMT 0.9390 0.9461 0.9070
Thank you
Happy Trading
~FibStalker
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