AUD/USD Signal- Oct. 21, 2013

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By: John Ursus

AUDUSD Signal 102113

Timeframe: W1 Recommendation: Short Position
Entry Zone: 0.9700 – 0.9725
Take Profit Zone: 0.9300 – 0.9325
Stop Loss Zone: 0.9875 – 0.9900

The AUDUSD has rallied sharply as visible in this W1 chart. The rally was fueled by the perception that the Reserve Bank of Australia has completed all its rate cuts and that the next move could be an increase in interest rates. This has acted as a bullish force for the Australian Dollar. On top of that the US Dollar has continued to sell-off as investors believe quantitative easing will remain in place longer than anticipated.

The AUDUSD has now approached a twin resistance zone which is comprised of its Fibonacci Retracement level as well as horizontal resistance zone. Traders should expect a pullback in this currency pair back down to solid support levels before the next move higher which should lead to a breakout above parity. The overall long-term bullish trend remains intact.

Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.