AUD/USD is behaving as we expected it might (read
here) and we believe that next move will be to the downside. On the daily chart you can see the 1.0150 level was clearly broken, and the suckers wiped out. The plunge should occur next, thoroughly frustrating current long positions and those shorts who have been stopped out by the 185 pip rip up slightly past 1.0300. This speculation is supported by a very strong
U.S. Dollar in the month of February and would line up with a "correction" in the market that everyone seems so sure we'll get. (Side note: when we do get it, everyone is going to begin calling it the start of a new "bear market" and after the people who bought the dips get wiped out, we expect the equity markets to rip up to fresh all time highs.)
This 4 hour chart below shows a good risk to reward setup, with 1.0290 acting as overhead resistance, and and .618 fib and highlighted area providing (short term) support at 1.0185. If we get below 1.0150 again we think price should hit parity fairly soon after that.
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