Daily Technical Update
February 16, 2010
AUD/USD Reversal Signal



* Daily: The market is showing reversal signals before the 1.09 area that was projected last week. (Refer to Daily Technical Update 2.11.2010 USD/CHF).
* The stochastic shows bearish divergence, and price action is showing bearish takeover. This price action at the completion of a bearish gartley is giving very strong bearish signals for the short-term.
* Also, the market has a powerline at the 1.05 area, so that will be an important level to monitor for the current decline, and can be a short-term target.
* 4H: The 4H chart shows the reversal in order as the pair breaks below a rising trendline. We may be start the corrective waves of a complete bullish cycle. The 1.05 powerline mentioned before is the 50% retracement of this uptrend and is a short-term projection of the current retracement decline.
* There should be confirmation from a pullback as the stochastic in 4H nears oversold.




Fan Yang
Currency Analyst
Commodity Trading Advisor

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