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Wednesday, May 19, 2010

AUD/USD - Is the first wave down coming to and end?

The break below 85.76 today has triggered a double top with a target in the 77 area, whats more important to me is, that we now have a clear five wave decline from 93.82 telling us that more downside pressure will be seen.

Looking at the short term picture (se the chart below) we can se a clear five wave decline followed by minor divergence on the RSI, which could indicate that a correction will soon be seen. If a correction is nearby we should see a move towards 87.73 and possibily even the 90 area (less likely thus) after which a new powerfull decline should be seen.







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