Sunday 3 March 2013

AUDUSD, Sunday March 3, 2013

Hi Traders,

The Aussie Dollar that set a low at 1.018 could stage a very limited rally before finally heading South and start a new major downtrend.


In the monthly chart below the AUDUSD has completed all 3 major waves up typical of a "Giant Two-Step-Pattern" started in April 2001 and ended in July 2011 at 1.1085.

After performing wave 3 up to the top (there are supposed to be only 3 waves), we started 4 retracement waves out of 5 (in magenta) in trading range.

NOTE: see the "breakaway" candlestick around number 4 in magenta , which is a powerful reversal pattern (4 doji candles + a wide red real body).

click the chart to enlargs, esc to exit

See the 4 waves in magenta in the weekly chart below

click the chart to enlargs, esc to exit

As shown in the daily chart below there should be a little correction upwards to the resistances at 1.0317-1.0336-1.034 followed by a major downtrend.

Note: the above targets could be a good Entry Point for a great short, provided that you wait for the complete development of an a-b-c up (two-step-pattern).


Se wave 1 and 2 in grey and the the double bottom in the 4-hour chart below to indicate the start of the new little trend up

Finally, please use the "wave oscillator" plotted in the 1-hour chart - or lower - before entering the new trade.

SHORT RANGE TARGET: to 1.0317-1.0336 or even 1.034.
MEDIUM RANGE TARGET: 0.939 and 0.88.


The wave oscillator in the 15-min chart below shows that the new little retracement up is already started.


The red and grey lines swapped positions as soon as the new uptrend started: the red lines - which run inside in case of downtrend - moved outside and the grey lines moved inside, showing a new uptrend.