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
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
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • A recession is typically accompanied by falling stock prices, but equities are not the be-all and end-all for recession investment strategies. Get your market update from @PeterHanksFX here: https://t.co/H0Rf3AkECs https://t.co/5Il5ptMnMu
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/y2tXiYs9aV
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/H6I3MXjW06
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/ZsHdd9NFcO
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/TisnGYxllM
  • Here my weekend trading video 'Dow, VIX, Dollar and Gold: Levels and Volatility to Gauge the Markets' https://www.dailyfx.com/forex/video/daily_news_report/2020/03/28/Dow-VIX-Dollar-and-Gold-Levels-and-Volatility-to-Gauge-the-Markets-.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • #Silver and #gold prices have had a fascinating 2020, counterintuitively falling as the #coronavirus’ economic hit has become horribly apparent. A rebound is now afoot. Get your market update from @DavidCottleFX here: https://t.co/nng7lwQ22E https://t.co/JwehIVbBA2
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/mcq5Bq2Jui
  • The $USD soared against the Indonesian Rupiah, with USD/IDR eyeing its best month since the 1997-98 Asia financial crisis amid the #coronavirus outbreak. Can this trend continue? Find out from @ddubrovskyFX here:https://t.co/M3sDZOftrE https://t.co/sbIbp68UOh
  • The $USD may be at risk as technical signals show USD/SGD, USD/MYR and USD/IDR may turn lower. Ahead, the markets will likely weigh US fiscal stimulus bets against dismal data risk. Get your market update from @ddubrovskyFX here:https://t.co/iGqBrY6qyO https://t.co/kJ89YgK3Mm
The Aussie Ascends on Resistance at 1.0380

The Aussie Ascends on Resistance at 1.0380

2012-01-12 19:42:00
Walker England, Trading Coach,
Share:

The AUD/USD continues to be a difficult read for trend traders in recent months. It has not been experiencing the massive declines seen on other pairs like the EUR/USD and AUD/USD. Below, we can see the Aussie making advances relative to the USD. The AUD/USD has gained 723 pips since the creation of its November 2011 low, at .9662. By comparison, during the same time frame the EUR/USD has declined a maximum of 866 pips! So which currency is stronger, the Aussie or the US Dollar?

Our technical trading knowledge with trading patterns will give us a hint on price direction. A triangle has been building on our daily chart, as price consolidates between support and resistance. As there is not much space in the interior of this formation, we can move to smaller term timeframes and look for breakouts. Depending if price penetrates support or resistance, we can clue in for the development of our next trend.

The_Aussie_Ascends_on_Resistance_at_1.0380_body_Picture_1.png, The Aussie Ascends on Resistance at 1.0380

Moving to our 8Hour chart, we can see the formation of an ascending triangle. Support has steadily risen, as indicated on our daily chart. Resistance is created by connecting our highs near the 1.0380 pricing level. Each time price has tested this point, selling pressure has held off further advance. It is important to note however, that each time price failed to break over 1.0380, a lower low has not been created. Due to this fact, preferences will be given to breakout occuring to the upside.

The_Aussie_Ascends_on_Resistance_at_1.0380_body_Picture_2.png, The Aussie Ascends on Resistance at 1.0380

My preference is to place entries to trade the AUD/USD on a breakout. Entrys to buy should be set near 1.0450. Stops should be placed at 1.0350 under our support line for a clear 1:2 Risk/Reward ratio. Secondary targets may reach for new highs over 1.1075.

Alternative scenarios include continuing to trade “inside”, prior to a breakout.

---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

News & Analysis at your fingertips.