Gold and AUD ready to retrace?
Dollar strength was the story today, pulling risk currencies and commodities off their highs, most notably AUDUSD and EURUSD, gold and oil. I have attached a daily chart of AUDUSD to make note of the beautiful double top accompanied by the negative divergence showing very prominently on the CCI indicator. Is this a signal after yesterday’s doji and today’s subsequent fall that more retrace is in the works? It will be more apparent once price revisits this very important trend line which has been in control since the March low, now seen at about 0.9100, the weekly pivot. I will be playing the shorts by selling the rallies as long as 0.9310 holds resistance. Typically with this CCI divergence I like to target the daily 50ema, but since it is quite a bit below the trendline, I will likely take profit nearing the trendline until and unless this trendline is actually broken. This is a contra trade since the trend is still very much up, so stops will be tight. Price may very well fall to this trendline and then reverse again to go higher. 0.9301 is 61.8% of today’s range, an excellent entry but the daily pivot at 0.9272 may also hold. Let’s see how Asia sets up. Good luck and good trading.


Jennifer Shotts

Casey Stubbs has been trading for 14 years. He started trading in the stock market and moved to Forex.
Richard draws from his extensive experience trading to write insightful trading articles for both fundamental and technical analysis.
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