AUD/USD Triangle Formation (October 8, 2013)

AUD/USD could be in for a decline today as the .9450 minor psychological level has been holding well as resistance so far. A drop could last until the recent support around the .9350 minor psychological level.

The intraweek resistance is in line with the top of a triangle on the 1-hour time frame while the potential support at .9350 is found at the bottom of the triangle.

 

Stochastic is in the overbought zone and moving down, hinting at a potential selloff. There are no major reports due from both the US and Australia today so the ranges could hold.

Shorting at .9450 and having a 50-pip stop with a 100-pip target would be a 2:1 trade for the day.

By Kate Curtis from Trader’s Way