Market Condition: AUD/USD Daily Breakout
Target 1: .7706(2XATR)
Target 2: .7884(4X ATR)
Invalidation: Reversal Below .7470
(Created using Marketscope 2.0 Charts)
Get Real Time SSI Data for the AUD/USD. Click HERE
The AUD/USD is consolidating with a series of inside bars after posting a new monthly high last Wednesday. March’s high is currently found at .7528 and is acting as a point of resistance for the pair. Conversely Wednesdays low for the AUD/USD is found at .7412, and is acting as support. With SSI reading at -1.86, traders may take a bullish bias for the pair and begin looking for breakouts above resistance to enter into the market.
In the event of a breakout, traders may consider extrapolating potential targets using ATR. Current daily ATR for the AUD/USD reads at 89 pips. This means using a 2X ATR target, traders may begin looking for price to reach .7706. Extend targets found using 4X ATR may also be found near .7884.
In the event of a false breakout, traders will look for prices to return back inside Wednesdays range. In this scenario a move to .7470 would suggest a return to consolidating markets. Alternatively, a decline below support at .7412 would have additional bearish implications for the pair.
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