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
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • (#ASEAN Fundy Weekly) The US #Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian #Ringgit. The Philippine Peso gained. What does #USD face from here? $USDSGD $USDPHP $USDMYR $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/06/US-Dollar-Back-on-the-Offensive-USDSGD-USDPHP-USDMYR-USDIDR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/8CKptvL6Uz
  • This thread 😂 https://t.co/9nek6fXA1t
  • This is the best one of the thread. https://t.co/dXGZZVzww7
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/ZzbHAVT6RE
  • LIVE IN 30 MIN: In this session, Currency Analyst @ZabelinDimitri will analyze the cross-asset impact of geopolitical risks affecting markets in the week ahead. https://www.dailyfx.com/webinars/146770987
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 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/jdzRaFJnaa
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.20% Gold: 0.06% Oil - US Crude: -3.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GqKRXlbHQc
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.42% 🇳🇿NZD: 0.30% 🇪🇺EUR: 0.07% 🇨🇭CHF: -0.04% 🇬🇧GBP: -0.24% 🇯🇵JPY: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6yhR5FFtZw
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.10%, while traders in US 500 are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gvtwxfEvLB
AUD/USD Trades to Weekly Highs

AUD/USD Trades to Weekly Highs

2016-06-08 17:00:00
Walker England, Forex Trading Instructor
Share:

Talking Points

  • The AUD/USD is set to close higher for fourth consecutive session
  • Short Term Momentum Points Lower, Historical Distributions Set Higher
  • Bullish Distributions Begin at .7481, Signaling a Resumption of the Trend

The AUD/USD is currently trading to new weekly highs, and is poised to close higher for the fourth consecutive session. This initial surge in price higher was predicated on a technical move through .7253, which is represented in the graph below using the 200 day moving. Normally a move above the 200-day MVA suggests the beginnings of a bullish trend. Knowing this, day traders may then elect to move in to smaller time frames and look for signs of the trend continuing.

AUD/USD Daily Chart with 200MVA

AUD/USD Trades to Weekly Highs

(Created using Grid Sight Index)

Monitor GSI in Real time! Get started HERE.

Displayed in the graph below, we can now see the AUD/USD turning off of its highs. This short-term downtrend has developed with price action printing a string of 5minute candles moving towards lower lows. However, despite this retracement, the Grid Sight Index has reviewed 31,673,450 matching pricing points and identified that prices have advanced a minimum of 13 pips in 50% of the 110 matching events. If price reaches this first bullish distribution point at .7481, it would suggest this move lower was a retracement in a broader uptrend. A move over this value would also indicate fresh bullish momentum for the pair. In this bullish scenario, traders may look for prices to test other bullish distributions. This includes the 20% distribution, which resides at .7493.

Traders should watch for a reversal of the markets current trend. Out of the 110 matching events provided by GSI, the market declined 12 pips in 32% of these instances. It should be noted that the first bearish distribution is located at a price of .7456. If the AUD/USD declines to this point, it opens the pair up for a further retracement. In this scenario, traders should next watch for the final bearish distribution at .7420. A move to this point would represent a 48-pip decline and only occurred in 5% of the 110 matching events.

What is GSI?

Grid Sight Index is a powerful big data indicator that can help you determine whether short-term trends will continue or reverse. GSI takes a snapshot of current price action and uses that to find similar events by studying millions of historical data points. Then it studies those events to show you how often the trend continued or reversed in the past.

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.

Looking for additional trade ideas for US Dollar Pairs? Check out our Trading Guide

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

DISCLOSURES

News & Analysis at your fingertips.