The Aussie.

Good evening Dynamic Traders,

The Australian Dollar at the moment is in a downtrend as it has been heading South since July 08. After it massive move down we are now in a consolidation and at present it stands at the lower breather level with a sort of a bearish flag.

If we now go down to the 4 hour timeframe below, the recent price action from February 14th looks corrective and so I am looking for a possible shorting opportunity to develop. It has nearly tagged its V.I. on this timeframe today, and has got divergence on RSI, although it is still above 50. I shall wait to see what develops with this as high impact news is out regarding this pair throughout tomorrow but will be ready for a move should my confirmations come together.

As always please do your own analysis before taking any trades.

Charts courtesy of TradeStation.

Enjoy tomorrow's trading.

Clayton Farnworth.