Patience pays. If we have a close which looks like this come Friday 12th Sept, we would then have a bearish engulfing pattern on the weekly chart which is a good thing if you had shorted the AUDUSD. I have been holding this trade since July 24th, 2014 riding the ups and down believing the main trend is down as explained in my article 710 pips on the Aussie trade, which is a step by step explanation on why I shorted the AUDUSD.
What we have here is the daily chart. Yesterday’s price action showed that 0.9242 support has finally been broken. This morning, Australia showed positive employment news where jobs increased by 121k versus estimates 15.2k and unemployment rate dropped 0.2% to 6.1%. So what we will potentially see is a potential of AUDUSD going up and the place to look out for is 0.9242 where old support become new resistance. The maximum area which I think AUDUSD should retrace if the downtrend continues is around 0.9282 area. So look for shorts at this area.