While the UUP has probed above key resistance, a marginal break has left room for a false-break reversal. The dollar is overbought at the moment and is exhibiting negative divergence with daily studies. Thus, at this point the UUP may need to consolidate gains before attempting to clear the important 23 level. Also, some of the majors have paused at key levels to suggest a possible short-covering reversal. The EUR/USD has stalled losses near the 100-day moving average and the key 38.2% retracement. The AUD/USD has found platform support near the .97 handle. As such, I am looking to establish a long position at current levels.
STRATEGY: BUY AUD/USD at .9780, risking .9725, targeting .9825 1st
About Me
- FXTRENDS 2011
- Peter Ruud is an experienced technical analyst with a diverse analytical skill set. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. He has been trading the global markets for over 10 years. His analysis is often featured in Seeking Alpha, Safehaven and thestreet.com.
