Forex Marketz Daily Forex News – Fully Markets Update
Some points to consider:
- Appearance of a morning star candlestick and falling trend line break, indicates move higher for the AUD.
- Exited short AUD trade, placed at 0.7215. 50% of the profit taken. Waiting for another short AUD trade to setup.
- Trade Strategy: Stand Aside
The AUD/USD is looking to carve out a bottom, with the appearance of a morning star candlestick supporting this. Please refer to the below AUD/USD daily MT 4 chart for today’s technical analysis. Note that the Australian Dollar has found some support around 0.68888. This is near the key pivot at 0.69. This Forex market then shot back up higher above a trend line resistance keeping prices down since mid- May.
Technical Analysis
Let’s look at today’s AUD/USD technical analysis. There is near term resistance lining up at 0.7032. A daily close above this level will challenge the next technical resistance lining up at 0.7109. The alternative AUD/USD technical analysis, should the Australian Dollar turn back lower, notes technical support lining at 0.6986. A break below this technical support tests the next technical support, and September 4 low, at 0.6908.
Trade Strategy
Now let’s discuss the AUD/USD trade strategy for today. As you know I had a short Australian Dollar trade in play. I entered this trade at 0.7215, booked profits on half the trade and moved the stop loss to break even. Now here is my rational for exiting the trade to wait for another short AUD trade to come along. The appearance of a morning star candlestick with other signs of a bottom forming, the breaking of the trend line resistance in particular, warns of an impending bullish move for the AUD/USD Forex market. Taking all of this into consideration, I am exiting the remainder of my short AUD and will wait for another trade opportunity to come along.
