NICE EOY MOVE FOR THE AUD 12/30/14

THE AUD was beaten down leading into the end of the year, selling below previous SB levels. Short break out target.  See terms/prior post for BOT levels and 50CB discussions).

Monday evening/Tuesday in OZ, the AUD price was at the lower end of the LB-SB range run and had a slight gap, which is a bullish signal.

Buyers had entered previously near the SB for a run to test the LB where a "D-Tracy" pattern developed and forced price to run the range back lower.  The new gap, albeit lower, had a 50CB to test near the MB and another just above.  Both of these would hit and fail, pushing price even ;lower.

As each 50CB test failed, it drew away resistance at those levels.  A bullish channel developed  allowing for nice long positions.

With resistance weakened, and the market not showing signs of breaking the bullish support just below the SB, the market was primed for a range run to the LB.  Since the break out attempts at the SB were weak, the LB was deemed to have a significant run break.

End to a great year.   Hope all have a safe and prosperous New Year.

THE AUD IN TROUBLE 12/16/14

THE evening started simple enough, price action on the AUD/USD was stagnant near the mid range (MB).  We had a 2 min chart 50CB and a 5 min 50CB  trapping just below the MB, and a lower trend line was developing in the 2m chart.  A parallel line was added as price continued to drift.

The lower extreme of the move was stopping at an earlier 50CB..  Three hits and we see the buyers enter pushing prices toward the LB.

A price failure developed quickly.  A FBO is believed to support a range run to the opposite level, which would be the SB in this case,

A FBO of a level  with a range run also suggests that we are likely to see the opposite level break.

The SBBO developed with no immediate attempt to test the 50CB, suggesting another leg down.

A bad day for the AUD, a great day to play the BOTs.