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 Enters Into 100 Pip Range

AUD/USD Enters Into 100 Pip Range

Walker England , Trading Instructor,

The AUD/USD remains in a holding pattern on its daily trend, finding resistance at its .618 retracement level as printed in the December 1st edition of Chart of the Day. For five trading days the pair has negated to make new highs or new lows. These sideways conditions are conducive for range traders, looking to buy and sell between points of support and resistance.

AUDUSD_Enters_Into_100_Pip_Range_body_Picture_1.png, AUD/USD Enters Into 100 Pip Range

Taking Price in to a 2Hour chart we can begin seeing a well defined range develop. Resistance resides at our previously created high of 1.0329, on November 30th. Support is defined by our December 1st low of 1.0222. Once a range is defined, we can begin looking for entries against either support or resistance. One way to spot an entry trigger is to use the CCI oscillator as depicted below. Traders may patiently await the oscillator to move to overbought (100) and sell on a break back below to oversold (-100) levels.

AUDUSD_Enters_Into_100_Pip_Range_body_Picture_2.png, AUD/USD Enters Into 100 Pip Range

My preference is to sell the AUD/USD at 1.0300 or better using CCI as an entry trigger. Stops should be placed over resistance at 1.0350. Limits should be placed at 1.02000 for a clear 1:2 Risk/Reward profile.

Alternative scenarios include price continuing higher and breaking out of its range.

Additional Resources

Support & Resistance

JW Ranger

Trading with CCI

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

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

DISCLOSURES