AUDUSD appears to have turned earlier than expected, it is the best performing currency of the month and despite the problems with a credit downgrade for its banks it appears to be gaining momentum again. ( copper and oil ) appear to be getting close to turning higher which adds to the probability of success. Indices are also moving higher helping with a general risk on feeling.
The Technical Picture
The shows the pair is in a long term corrective pattern but has some way to run to get to the top of the pattern, an eventual break higher is predicted but that could be months away.
The hourly chart shows the immediate position, the pair was forecast to head down into the green inflection point however a turn higher may already have occurred, if so a higher low has been registered. Should a new high be registered then the proposed path lower would be invalidated and the next stop is likely 0.7680.
The inflection points are an important part of my trading plan, they represent an equal leg forecast of a 3 wave move, when they fail to be met it can imply a significant move is underway. All of my trading is based on the concept of prices moving in waves, these waves connect into sequences normally consisting of 3, 7 or 11 waves. Making use of this wave pattern is how i make profit.