Video: AUD/USD – The Aussie Looks to be Preparing to Bounce Higher

The Australian Dollar is signaling a possible recovery in the AUD/USD Forex pair. If you note the formation of not only positive RSI convergence but the appearance of a morning star candlestick pattern, then we can begin our analysis.

Technical Analysis

Let’s look at today’s technical analysis of the AUD/USD Forex market. Note that there is near term resistance lining up at 0.7344/3. A daily close above this level challenges the next technical resistance lining up at 0.7395. The alternative AUD/USD technical analysis, should the Aussie Dollar drop, notes support lining up at 0.7250. A close below this level challenges the technical support lining up at 0.7187.

Trade Strategy

There is some moderate event risk coming out today for the AUD/USD Forex market. The traders already shrugged off the manufacturing data which came out a bit better than expected in Australia and later today we get personal income data out of the United States. Looking at today’s technical analysis, price action is not very conclusive to warrant a long or short AUD trade at this time. Timing is not quite right from a risk to reward perspective. Also, there are no clear bullish reversal signs. Keeping this in mind, I will opt to stand aside and monitor my charts for a better trade opportunity to present itself.