The Aussie Dollar Trades in a Choppy Consolidative Pattern

Points to consider in this Aussie Dollar article:

• Australian Dollar is in a choppy consolidative pattern.
• No actionable trade setup right now.
• Trade strategy: Stand aside

The AUD/USD Forex market continues to trade in a rather choppy consolidative trade pattern below the 0.78 handle. Price action has struggled to find follow-through for the last several months. However, if you note the below daily MT 4 chart, the trade range between the support and resistance levels is beginning to narrow. This could force a breakout one way or the other at some point.

Aussie Dollar Technical Analysis

Let’s discuss today’s Aussie Dollar daily technical analysis. A daily close above the August 11 high at 0.7760 challenges the next layer of technical resistance at the April 21 top. This layer is at 0.7834. The alternative Aussie Dollar technical analysis, notes the rising trend line support lining up at 0.7540. This trend line is in play since mid-January. A beak below this first downside barrier challenges a double bottom support level that lines up at 0.7442.

Trade Strategy

Let’s talk about today’s AUD/USD trade strategy. There is no actionable trade setup at this time. Price action is too close to a technical resistance level to warrant a long AUD trade and there is no clear cut bearish reversal signal for a short AUD sale. From a risk to reward perspective a trade of any kind is absent and premature. I will opt to stand aside for a bit longer. For today, I am flat in this Forex market.