Forex Marketz Daily Forex News – Fully Markets Update
Points to consider in this Forex market:
- The Australian Dollar rallies the most in eight months in this market.
- Will still consider this as a corrective rebound as the bearish downtrend remains in play.
- Trade strategy: Stand aside
The AUD/USD Forex market gapped sharply higher in early trade as the AUD saw its largest daily gain in eight months. Prices are right now testing the underside of a triangle chart pattern. The breach below this pattern marked the return of the Aussie Dollar’s multi-year bearish trend. Right now, while no conclusive above this trend line, the Aussie remains bearish.
Technical Analysis
Let’s talk about today’s AUD/USD daily technical analysis. There is near term resistance lining up at the technical barrier of 0.7171. A daily close above this level challenges the next upside barrier lining up at 0.7255. The alternative AUD/USD technical analysis, should the Aussie Dollar fall back lower, notes the first downside barrier at 0.7105. Below this technical barrier there is a cluster zone starting at the November 10, 2015 low. This area runs from 0.7015 to 0.7040.
Trade Strategy
Let’s now get into today’s daily AUD/USD trade strategy. My open short AUD sale at 0.7098 has been closed. Rather fast. Right now, from a risk to reward analysis, price action is too close to a technical resistance. A long AUD trade is premature and against the overall downtrend in this Forex market. I will treat this recent gap higher as corrective and wait for it to fizzle out to enter another short AUD trade. For today, I am flat in the AUD/USD Forex market.
