Key Technical Themes:
* Elliot Wave analysis shows Aussie just completed wave-B up (blue) and is currently in wave-i down (gray) of overall wave-C down (blue) – This implies a move towards the 1.0145 prior low (at minimum) should be seen over the coming sessions
* Saw an RSI Bearish Divergence into the 1.0375/80 highs
* Formed a Shooting Star into the highs which was then followed by a Bearish Engulfing pattern shortly thereafter – These candlesticks imply further downside is ahead
* Price remains temporarily supported by the hourly 144 & 169 EMA’s, however while below 13-hour sma the bias remains lower as it should cap the immediate upside
* RSI has broken below corresponding trendline support IN ADVANCE to price (Leading Indicator)
* Sees trendline support from the Jan. 9th low near 1.0305
Ultimately, I’ll continue to look to fade any remaining Aussie strength as long as AUD/USD remains below the key 200-day sma and 61.8% retracement (using the July high & Oct. low) at 1.0415 and 1.0435 respectively.
AUD/USD Daily" title="AUD/USD Daily" width="622" height="761">