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By Jamie Saettele, CMT, Sr. Technical Strategist 30 August 2011 15:03 GMT Yesterday's LE of 14440 was triggered.

The EURUSD continues to probe the highs of the last several months, giving scope to a breakout towards the June and May highs (14694 and 14942). Structurally, I’ve maintained that the consolidation since the May high is just that – consolidation. Favor a break higher as long as price is above 14256. The final subdivisions of a triangle may be unfolding now.

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30 August 2011 15:03 GMT

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The USDJPY rally from its record low (just below 7600) is left as a 3 wave rally which is corrective and leaves price vulnerable to new lows. Reinforcing the bearish structure of the 3 wave rally is the sharp decline from yesterday’s high (impulsive). Short term resistance extends to 7705/25. If the USDJPY breaks down, the next level of interest on the downside would be the 161.8% extension of the decline from 7769, at 7507.

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I remain of the persuasion that the AUDUSD is headed lower. In fact, the rally from 9620 fits as a 4th wave within the decline from 10764. A top and reversal is expected at / close to current price (9970). Bearish objectives are the November 2010 low at 9534 and the 2009-2010 double top at 9400.

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I wrote yesterday that “near term weakness may extend to the August pivot at 10110 but there is now the possibility of consolidation in wave iv back into 10300-10400. Such a rally would present the next bearish opportunity.” Elliott channel resistance intersects with former resistance at 10380 today, which is an area I like selling into if reached. Shorts are favored against the Monday high (10440).

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By Jamie Saettele, CMT, Sr. Technical Strategist 07 October 2011 14:49 GMT “The AUDUSD has reversed from the long cited bearish target of 9400 and the channel that defines the trend from the July top. To review, 9400 is the 2009-2010 double top (2009 was slightly above 9400 and 2010 was slightly below). Short term structure is constructive, with the rally from the low unfolding in 5 waves. I favor buying dips. 9600 and 9540 are supports. Upside levels of interest are 9810, 9840, and 9880.” Price has already reached 9880! Resistance at this former pivot is reinforced by a short term channel. A reaction lower encounters support at 9745 and 9670.

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07 October 2011 14:49 GMT

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The sharp advance may be the beginning of the end of the wave 4 correction that has been unfolding since August. Currently testing Elliott channel resistance, 7784 is also resistance. As long as price is below 7956, I favor a top, reversal and decline to all time lows in order to complete 5 waves down from April. Yesterday’s rally is nearly entirely retraced and a break to a new low would shift focus to 7403 (width of consolidation subtracted from breakout level of 7594).

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