AUD/USD retraces 61.8% and reverses

FX:AUDUSD   Australian Dollar / U.S. Dollar
Since the trend in any instrument can best be measured by a series of wing highs and lows or in the case of a sideways market a lack thereof, traders have to evaluate the swings in a chart to conclude an instrument's present state. The Aussies has been in a significant downtrend since 8/9 but recently posted a big bounce starting on 9/6. My blog post on 9/4 “AUD/USD looking for a bounce. Has the longer term trend changed?” correctly identified the possibility of a short term reversal in the near term.

Since that bounce price has corrected 61.8% (common Fibonacci level) and now seems ready to reverse. With a report out this morning that Chinese consumption has weakened this should add to the momentum that has already begun and moved AUD/USD from its peak at $1.04 to 1.0346 as of this writing. See the charts below.

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