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.

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
EUR/USD
Mixed
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
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
Mixed
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
More View more
Real Time News
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/fqwM6tbGfe
  • The US has registered 59,691 new coronavirus cases on October 25th, marking a decline for the second day after hitting a record on 23rd. Yet risk assets appear to be vulnerable to further pullback should coronavirus cases continue to climb around the globe. https://t.co/jcXzNDYhoD
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/parnPmQwIj
  • Market Update Broad risk-on tilt seen in APAC trade Risk-sensitive $AUDUSD moving higher alongside #crudeoil prices and #SP500 futures Haven-linked $USD and $JPY sliding lower against their major counterparts
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.83% Oil - US Crude: 0.43% Gold: 0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/T7ZsigkoyK
  • The Australian Dollar didn’t appreciate fading Chinese industrial profits as roadblocks risk undermining global growth recovery bets. Will $AUDUSD fall on bearish technical cues ahead? - https://www.dailyfx.com/forex/market_alert/2020/10/27/AUDUSD-Forecast-Chinese-Industrial-Profits-Flash-Global-Growth-Warning.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/kIpo2YmhtL
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.18% 🇳🇿NZD: 0.15% 🇦🇺AUD: 0.14% 🇪🇺EUR: 0.12% 🇯🇵JPY: 0.08% 🇬🇧GBP: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Z29nLln3RK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.97%, while traders in NZD/USD are at opposite extremes with 73.04%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SHUgfk845A
  • Join @ZabelinDimitri 's #webinar at 10:30 PM ET/2:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/50VsGSFACG
  • Despite gains over the past 24 hours, the US Dollar may struggle finding momentum as markets remain in limbo until the presidential election. #ASEAN currencies eye US GDP data, earnings, #Brexit talks and rising #COVID19 cases - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/10/26/US-Dollar-Still-Struggling-USDSGD-USDIDR-USDMYR-USDPHP.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/BjKYmGvkz0
3 Reasons AUD/USD Could Be a Sell

3 Reasons AUD/USD Could Be a Sell

2014-09-12 19:11:00
Rob Pasche, Forex Trading Instructor
Share:

Talking Points:

  • AUD/USD has had increasing volume during its downtrend
  • Speculative Sentiment (SSI) for AUD/USD is +2
  • AUD/USD could break key support

For the last couple of weeks, it seems like the US Dollar has been strengthening against all other currencies. We’ve seen both breakout trading and trend trading setups as volatility has increased in the market as well. A good example of a potential trade setup can be seen currently with the AUD/USD. Today, we look at 3 reasons the Aussie could be a selling opportunity.

AUD/USD Volume Has Increased - Bearish

With the recent addition of the Real Volume indicator as an available add-on to Trading Station Desktop, I’ve been watching volume during trends to find confirmation. It is a very simple tool to use. All we need to see is increasing volume traded during a trend to confirm the trend’s strength.

In the case of the AUD/USD, we have seen 5 consecutive bearish candles accompanied by an increase in Daily trading volume. So not only do we have a pair with a clear downward trajectory, we also are seeing a lot of participation in the move. This increase in volume legitimizes the move and increases the likelihood that the trend could continue. Thus, a potential opportunity to sell the AUD/USD.

Learn Forex: AUD/USD Downtrend with Increasing Volume

3 Reasons AUD/USD Could Be a Sell

(Created using Marketscope 2.0 charts)

AUD/USD Sentiment is Positive - Bearish

I love analyzing retail sentiment. It is my favorite tool and I believe it turned my trading career around. So I always look to see what sentiment is doing before a trade is placed. For members of DailyFXPlus.com, we can see SSI updated two times a day. The chart below displays the SSI for AUD/USD as it compares to the AUD/USD’s actual price.

Learn Forex: AUD/USD Speculative Sentiment Index (SSI) - Positive

3 Reasons AUD/USD Could Be a Sell

(Screen capture from DailyFXPlus.com)

Sentiment oftentimes has an inverse relationship with price. So, if we see positive SSI, price tends to move lower. We have seen mostly positive SSI for the AUDUSD over the last couple of years alongside some major price declines. If this pattern continues, we could see AUD/USD move considerably lower with the latest stretch of positive retail sentiment.

AUD/USD Could Break Support - Bearish

Lastly, I wanted to bring readers attention to the major support level that the AUD/USD is hitting today. Using lines parallel to previously drawn trend lines, we can project a potential support level around 0.9030. It is very possible that the Aussie could bounce off this support level and move higher, but if we see the daily candle close below this trend line, it could give us an opportunity to sell.

Learn Forex: AUD/USD is Close to Breaking Support

3 Reasons AUD/USD Could Be a Sell

The chart above shows our trend lines drawn on a Daily chart. At the time this article was written, price was sitting right on top of this key 0.9030 level. If we see the AUD/USD below 0.9030 near trading close this afternoon, it could be an opportunity to sell and ride the trade over the weekend. Our intention would be to hold this position long term which would mean keeping trades open over the weekends anyway.

Selling Down Under (Support)

The key to this trade is waiting to see if price will close below support today or early next week. Sentiment and volume are both pointing towards a lower AUD/USD so we just need to be patient until we can technically justify selling this pair. But as always, perform your own due diligence before placing any trades on your own account. Also, feel free to utilize a demo account to practice trading risk-free before trading with real money.

Good trading!

---Written by Rob Pasche

Start your Forex trading on the right foot with the Forex Fast-Track Webinar Series. This 4-part, live webinar course is the disciplined Traders’ Fast-Track to the Forex Market. Topics include:

  • Using FXCM’s award-winning trading platform
  • Calculating Leverage and reducing risk
  • Trading with a simple (yet effective) trading strategy
  • Maintaining for Forex account and enrolling in on-going education

This course is completely free, so sign up or watch on-demand today.

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

DISCLOSURES