AUSTRALIAN DOLLAR

Today's MARKET STATE AUSTRALIAN DOLLAR **BEAR TREND**


- The MKT is in a soft neutral position. On the SELL side UP REVERSAL and FADE strategies with confirmation will be a better option over downside Breakouts, as selling into corrective reactions is the best position. The MKT remains negative but be patient as to not get caught FADING a corrective rise all the way up. DP BREAKOUT strategies are valid opportunities but look to take profits on emotional drops versus getting trail stopped on corrective pull backs.
- On the BUY side DIR and UP BREAKOUT strategies should be looked at as a "one-shot" deal. Either the MKT railroads higher in a steady climb or it’s just a head fake to sell. If you get on a steady advance, ride it until structure is broken. DP and DT1 REVERSAL strategies are valid, as the neutral tone has the potential to produce false signals in either direction.  Avoid DP FADE BUYS as the negative trend remains in force.

Today's PRICE MAP Performance for DA

Wrap Up

With an MC Value of -4 and the R Level at the minor level above the UP, the AUSTRALIAN DOLLAR has produced a BEAR TREND market state with a resistance "band" from the UP - R.  Any corrective price action up to this level is expected to exhaust here and provide traders with an opportunity to capitalize via a short position.  At 7:30 am CT, traders were given a SELL UP FADE opportunity at our expected major level of resistance, the UP.  This trade turned profitable immediately and gave traders an opportunity to take profits on the position at 9:30 am CT, when the market came to within a few tics of the DIR.  The market churned sideways in a tight range before eventually taking out the DIR and closing below the 1.0146 level.