AUD/USD sold off to and is recovering from the 55 day ma at .9339. Having severed the 2014 uptrend last week, we had assumed that rebounds would be relatively tepid – however they have been stronger than anticipated and our shorts have been stopped.
Nonetheless the intraday Elliott wave counts remain negative and our propensity is to sell the market again looking for failure circa .9420/40. We would then allow for losses to the .9203/00 May low and 200 day ma.
We also find the 55 week ma in this vicinity at .9183 and the 32.8% retracement at .9182 – these represent major break down points short term. Failure here will target .9000/.8980. (61.8% retracement).
CB