Market Condition: AUD/USD Pending Daily Breakout
Target 1: 1X Range84 Pips
Target 2: 2x Range168 Pips
Invalidation: Continued Consolidation
(Created using Tradingview Charts)
After breaking higher in yesterday’s trading the AUD/USD is now consolidating with the creation of an inside bar. If prices close at present levels, this will suggest that yesterday’s high is acting as resistance at .7695. Support may be alternatively found at yesterday’s low of .7611. Traders may use either of these points to plan for both bullish and bearish breakouts. It should be noted that this inside bar trading range, measuring 84 pips. Traders may use this value to find initial bullish targets near .7779, and bearish targets near .7527
In the event of a false breakout, traders may consider using half the distance of the range to create an initial 1:2 Risk/Reward ratio. Traders should also remember that it is possible that the AUD/USD may continue to consolidate. In this scenario, traders may elect to leave pending entry orders, or trade the ensuing range.
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