Saturday, April 3, 2010

AUD/USD: Trade Range or a New Bearish Trend?

(Click on the daily chart to enlarge it)
It´s hard to say if the Aussie is accumulating at resistance level 0.9250 to form a major Trade Range (from 0.9325 to 0.8580) or if this resistance level will hold all bull attempts to push prices higher, thus triggering a new major Bearish Trend.
As prices are forming lower highs on dailies (see bearish trendline on chart attached) my strategy is to enter SHORT at the following levels:
* SHORT at break of 0.9170 with STOP at 0.9215 and LIMIT at 0.9130
* SHORT at break of 0.9130 with STOP 0.9150 and LIMIT 0.9070
* SHORT at break of 0.9060 with STOP at 0.9095 and LIMIT at 0.9010
Below 0.9000 I´ll add higher lots with tight stops and with limit at 0.8810