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12 Sep 2013
AUD/USD, potential for 200/300 pips up, sell at 0.95/0.96 - Pattern Traders
FXstreet.com (Barcelona) - AUD/USD has been on a stubborn bullish run forming what might be a potential double bottom below 0.89, with a growing number of technicians now calling for a stronger recovery in the pair.
According to Jonathan Eliasof, Founder at Pattern Traders: "Overly one-sided positioning coupled with the recent break of neckline resistance warns of further Aussie strength over the near-term."
While Eliasof anticipates that a better than expected Australian jobs report may serve to push AUD/USD above key 0.9300/50 zone, "we view high beta strength as temporary, and will look to sell rallies accordingly" Eliasof said.
Eliasof is looking to fade the potential Aussie rally somewhere between $.95 and $.96. "The .9500/10 level coincides with the 38.2% fib and inverse H&S measured move; an overshoot could target the 161.8% fib and prior low at .9580/5" Eliasof said.
Eliasof stresses the strong confluency of 0.95/0.96, which leads to the notion of looking for some bearish reversal confirmation around the level to go short, the Trader said.
To conclude, Eliasof reminds us of his short term bullish technical view, which has the potential to yield over 200-300 pips for those long the pair should 0.9300/50 breakout be confirmed. However, on the big scheme of things, Eliasof thinks "traders should look for price action to stall once the H&S 'reversal' pattern is complete."
According to Jonathan Eliasof, Founder at Pattern Traders: "Overly one-sided positioning coupled with the recent break of neckline resistance warns of further Aussie strength over the near-term."
While Eliasof anticipates that a better than expected Australian jobs report may serve to push AUD/USD above key 0.9300/50 zone, "we view high beta strength as temporary, and will look to sell rallies accordingly" Eliasof said.
Eliasof is looking to fade the potential Aussie rally somewhere between $.95 and $.96. "The .9500/10 level coincides with the 38.2% fib and inverse H&S measured move; an overshoot could target the 161.8% fib and prior low at .9580/5" Eliasof said.
Eliasof stresses the strong confluency of 0.95/0.96, which leads to the notion of looking for some bearish reversal confirmation around the level to go short, the Trader said.
To conclude, Eliasof reminds us of his short term bullish technical view, which has the potential to yield over 200-300 pips for those long the pair should 0.9300/50 breakout be confirmed. However, on the big scheme of things, Eliasof thinks "traders should look for price action to stall once the H&S 'reversal' pattern is complete."