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Morgan Stanley's Technical Chart of the Week is AUD/USD ... further upside

Discussion in 'Technical Analysis' started by ForexLive, Oct 6, 2015.

  1. ForexLive

    ForexLive Forum Member

    Sep 2, 2015
    Likes Received:
    There are 3 charts, from the long-term chart looking back to 2005. Says Shah:

    • When AUDUSD broke out of the bottom end of the longterm channel at 0.84, a further bearish AUD signal was triggered.
    • We still target 0.65 for the end of next year but the short-term charts below show that there could be some upside in the coming weeks.
    • Our positioning tracker suggests that the market remains short AUD, therefore opening room for a reversal.

    Then to the 2 year chart, comments:

    • AUDUSD has failed to break below the 0.6896 low from early September.
    • We believe that this was a sign that AUDUSD is set to rebound for the time being.
    • We believe that AUDUSD has formed a complete a-wave structure, so the b-wave would take AUDUSD back into the trend channel drawn here. Initial moves above the 0.7300 high are required to keep the momentum

    And so to the shorter-term:


    Says Shah:

    • AUDUSD attempted to make a new low but failed to go below 0.6937.
    • We believe this was the end of a b' wave, suggesting further upside for AUD, completing the c' above 0.7273 at least.
    • A move above here opens the way to our tactical trading target of 0.7500.
    • The level is around the middle of the channel shown above.

    Read full forex technical analysis here...

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