Skip to content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
AUD/USD Next Pending Bearish Breakout

AUD/USD Next Pending Bearish Breakout

Walker England, Forex Trading Instructor

Market Condition: AUD/USD Pending Breakout

Target 1:______2X ATR at .7228

Target 2: _____ 4X ATR at .7128

AUD/USD, Daily Chart with ATR & 10 Day EMA

(Created Using IG Charts)

The AUD/USD is trending back towards 2017 lows, after declining as much as 145 pips from the May 23rd swing high at .7517. With the pair again trending lower in the short term, traders may elect to trade a fresh bearish breakout beneath the standing yearly low at .7328. Traders should note that current daily ATR (average true range) for the pair reads at 50 pips. This means an initial profit target of 2X ATR may be considered near .7228. Also a 1X ATR stop loss may be considered at .7378 to create a 1:2 Risk/Reward ratio.

In the event that prices fail to breakout lower, traders may elect to delete any pending entry orders to sell the market. Currently the 10 day EMA (exponential moving average) for the AUD/USD is found at .7433. This line may be used as a dynamic reference for the short term trend, with a daily close above this value suggesting a change in the markets current direction.

Looking for additional trade ideas for the Forex market? Read our quarterly trading guide here.

--- Written by Walker, Analyst for DailyFX.com

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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

DISCLOSURES