We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/MhP7opgk4a
  • Investors in stocks, commodity currencies and energy have been praying for a massive fiscal bazooka to combat the virus effects. It looks like they’re going to get it. Get your market update from @DavidCottleFX here:https://t.co/e2ciGSYftY https://t.co/Udoi5UMJrl
  • The ‘V-shaped’ recovery in USD/JPY just failed to hit its target and is now moving lower again. Important support is now being tested. Get your $USDJPY technical analysis from @nickcawley1 here: https://t.co/koiac0Rxvs https://t.co/CsVsS7PVMV
  • The Australian Dollar has been lifted from its multi-year lows by hopes that global financial authorities can fend off the worst of the #coronavirus‘ effects. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/GC5pwNbY9S https://t.co/OryobNq7uL
  • Before considering to enter a position, price action must come into contact with the upper or lower channel line at least three times. Learn how to validate a channel here: https://t.co/Rd5hDm7gRo https://t.co/mubPgmDRRY
  • A tidal wave of cash waits to return to virus-battered assets, backstopped by huge stimulus. It is unlikely to deploy until infection slows, whatever the US administration prefers. Get your market update from @DavidCottleFX here: https://t.co/OWOi2HxejD https://t.co/jvMXT7te1h
  • The bullish engulfing candle is one of the forex market’s most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/edEHzyoCJT https://t.co/vHPSW7Vm96
  • It was a big week for GBP/USD as Cable crushed shorts, rallying more than 1,000 pips off of last week’s lows. Get your $GBPUSD technical analysis from @JStanleyFX here: https://t.co/n6vYfe6Gfh https://t.co/zQq74Zzxsv
  • The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/ZNRBvNELeJ https://t.co/CKkWNMLkuw
  • The US Dollar could rise if key ISM, PMI and nonfarm payrolls data causes recession fears to swell and rekindles appetite for the haven-linked Greenback. Get your $USD market update from @ZabelinDimitri here: https://t.co/iTlnxWuSqn https://t.co/brEsDw2a5K
Bearish AUD/USD Off of Confluent Resistance Zone

Bearish AUD/USD Off of Confluent Resistance Zone

2018-02-15 17:21:00
James Stanley, Strategist
Share:

- For trading ideas, please check out our Trading Guides. And if you’re looking for something more interactive in nature, please check out our DailyFX Live webinars.

To receive James Stanley’s Analysis directly via email, please sign up here.

AUD/USD Rally to Resistance on US Dollar Weakness

The Australian Dollar started to see pressure in late-January after a false-breakout around multi-year highs, and that theme remained for most of the first half of February. This week has produced another lurch-lower in the US Dollar as that bigger theme of weakness continues, but this has helped to perk AUD/USD up to a level of confluent resistance that could be usable for bearish strategies.

The confluent zone is demarcated by two different Fibonacci retracement levels: the 50% Fib of the 2001-2011 major move rests at .7929, and the 61.8% retracement of the 2008-2011 move is at .7946. Collectively, these prices help to produce a zone of resistance that thus far has been able to help elicit sellers after this week’s advance.

Are you looking for longer-term analysis on AUD/USD, check out our DailyFX Forecasts.

This also opens the door to short-side strategies. Stops can be investigated above the psychological level of .8000, so that if bulls are able to continue driving, losses can be mitigated at around 100 pips. Initial profit targets can be set to .7785 for a better than 1-to-1 risk-reward ratio; at which point stops can be adjusted to break-even. Secondary profit targets can be set to .7700, .7600 and then .7525.

AUD/USD Daily Chart: Response Around Confluent Resistance .7929-.7946

AUDUSD Daily Chart

Chart prepared by James Stanley

To read more:

Are you looking for longer-term analysis on the Australian Dollar, or the USD? Our DailyFX Forecasts for Q1 have a section for each major currency, and we also offer a plethora of resources on our AUD/USD, EUR/USD, USD/JPY and U.S. Dollar pages. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.

--- Written by James Stanley, Strategist for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.