Talking Points
- AUDUSD Reverses Inside Daily Range
- Range Resistance is Found at .9043
- Bullish Breakouts Signaled Over .9061
AUDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The AUDUSD has been range bound so far today, with price currently respecting key values of support and resistance. Price started the day testing range resistance at a price of .9043, located near the R3 camarilla pivot. In the absence of a breakout, price quickly dropped to range support identified by the S3 pivot at a price of .9006. The distance between these two points is 37 pips, which comprises today’s trading range. Price is currently trading in the middle of these values, and in the absence of a breakout of either support or resistance traders will look for ranging conditions to continue.
Breakouts are always a strong possibility during the U.S. Trading session. Traders should continue to monitor both breakout values to identify a change in market momentum. At present the R4 breakout pivot stands at .9061, and S4 support rests at .8988. In either scenario, a breakout would signal a conclusion to current range bound conditions. Traders could then opt to place orders with new market momentum.
Yesterdays Update
On Monday the EURGBP was trading in a tight 22 pip range. After moving to support overnight, range reversal traders were looking for a bounce in price back to the R3 resistance line during the U.S. trading session. By the conclusion of the trading day price had tested resistance, thus completing its second cycle of the daily range. To learn more use the link below, to review the setup!
FX Reversals: EURGBP Range Reversal
---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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