AUDUSD - This Weeks Technical Opportunity

[B]Potential for a Breakout

• Completing a Long Term Uptrend[/B]
Current Price: .7950

Key Levels:

Weekly Chart 03-16-2007

There are a number of ways to interpret the longer term wave structure of the AUDUSD. The above chart shows the preferred count with the pair working higher in a 5th wave that will complete a long term 5 wave bullish sequence (that began in 2001). The corrective 4th wave was a triangle (shown with subwaves A-B-C-D-E). The thin line is being tested for the 4th time – a break may very well see a rapid run up in the Aussie.
[B]Daily Chart 03-16-2007

This is a close up of the larger 5th wave rally that began in June 2006 at .7270. The rally is in its latter stages, currently tracing out wave 5 of 5. A break above .7982 would confirm that the “5th of the 5th” was underway and that the pair is headed to measured objectives that lie near .8100-.8200. Wave 1 (of 5) would equal wave 5 (of 5) at .8128.
240 Minute Chart 03-16-2007

The short term Fibonacci levels are support at from .7898-.7939. In order to keep the bullish bias intact, the pair needs to remain above .7877. The momentum extreme with RSI indicates that another leg up is in order. Rarely does a market reverse without making a divergence with momentum oscillators.