FX Reversals: AUDUSD Morning Breakout
- AUDUSD Breaks Defined Range
- Breakout Signaled Under S4
- Range Support Starts at .9323
AUDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The AUDUSD opened overnight trading inside the denoted camarilla trading range pictured above. However, early U.S. and London trading brought the AUDUSD back under support, creating an opportunity for an early morning breakout. Support, as marked above by the S4 camarilla pivot, resides at .9314. Currently, price has broken below this value, indicating that the pair is moving towards lower lows for the day. Breakout and trend trader can take advantage of this directional reversal, by looking for opportunities to sell the AUDUSD with current market momentum.
Breakout traders should always be wary of a change in market conditions. A move back to range bound markets would indicate the possibility of a false breakout. Currently the range is defined by R3 resistance at .9340 and the S3 support line at .9323.A price advance back to this point would invalidate the creation of any lower lows, at which traders should consider concluding any breakout trades.
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.
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---Written by Walker England, Trading Instructor
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