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
GBP/USD
Bullish
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
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.20% 🇬🇧GBP: -0.03% 🇨🇭CHF: -0.08% 🇯🇵JPY: -0.28% 🇦🇺AUD: -0.33% 🇳🇿NZD: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rnlzP9L32e
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 0.92% FTSE 100: 0.17% Germany 30: 0.17% US 500: -0.12% Wall Street: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SQW5xACMn8
  • The Canadian Dollar has modestly outperformed the rest of the G10 pack, as the commodity currency finds support from the pick up in oil prices. Get your $USDCAD market update from @JMcQueenFX here: https://t.co/FJ9bVhBr6r https://t.co/xRqpOiMH3K
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 0.46% Oil - US Crude: 0.28% Gold: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H77sqToPS8
  • Please join @PeterHanksFX at 11:00 EST/15:00 GMT for your weekly stock market outlook webinar. Register here: https://t.co/KBcZpD43t6 https://t.co/V6ZEBUj1jK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.36%, while traders in Wall Street are at opposite extremes with 72.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IbMbabi8NR
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.41% Silver: 0.22% Gold: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wSkvWlJyM4
  • Gold has been stuck in a holding pattern for the last few days with recent risk-off/risk-on events prompting very little reaction in the precious metal. Get your $XAUUSD market update from @nickcawley1 here:https://t.co/KXzqjx8mU0 https://t.co/hQCwubIV5g
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: 0.77% US 500: 0.16% FTSE 100: 0.14% Germany 30: 0.11% Wall Street: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u03rrXpglC
  • It's FOMC day! Measures of vol have been creeping up the past 48-hours - what does this mean for $DXY, $EURUSD, Gold? We're talking all this and more for the Mid-Week Market Update, starting now: https://www.dailyfx.com/webinars/140187219
AUDUSD Breaks Support and Offers Sell Opportunity

AUDUSD Breaks Support and Offers Sell Opportunity

Jeremy Wagner, Lead Trading Instructor,

By: Jeremy Wagner, Lead Trading Instructor, DailyFX EDU

jwagner@dailyfx.com

The AUDUSD has been climbing in a rising wedge for the past 2 days. Prices are coiling up and this bearish pattern looks poised to break lower offering a sell opportunity. The Commodity Channel Index (CCI) is flashing a bearish divergence signal and is breaking below its support line as well.

The Trade Opportunity

Sell the AUDUSD on a break below support near 1.0365.

Place a stop just above the recent swing high near 1.0410.

Look to take profits near 1.0240 for a nearly a 1:3 risk to reward ratio.

The Trade Set Up

AUDUSD_Breaks_Support_and_Offers_Sell_Opportunity_body_Picture_1.png, AUDUSD Breaks Support and Offers Sell Opportunity

(Created using FXCM’s Marketscope 2.0 charts)

There are 5 points building this bearish set up.

-Bearish rising wedge pattern

-Horizontal resistance at 1.0384

-200 Simple Moving Average on the daily chart at 1.0396 indicating resistance

-CCI indicator showing bearish divergence

-CCI indicator breaking its support line

The rising wedge was drawn by connecting the low of the wicks on prices from 9/15 and 9/16 to form a support line. A break of this support line will be our trigger into the trade. In addition to this wedge pattern, a horizontal red resistance line is formed from the high on 9/12 at 1.0384. Also, the daily chart sports the 200 Day simple moving average at 1.0396. This moving average is watched by institutions and can provide resistance as well. This helps create a potential bearish set up.

Additionally, the CCI oscillator is giving us 2 additional bearish signals. First of all, the yellow boxes on the chart indicate bearish divergence. That means the prices are pushing higher and creating higher highs, while the indicator is not confirming. The indicator in this case is creating lower highs. That means this move to the upside is losing momentum…much like when a car runs out of gas. The car can still move forward, but it doesn’t have the push like when there was gas in the tank.

Seeing this bearish divergence near resistance prices helps create a good opportunity at a good risk to reward ratio. Now the question is timing the trade.

The upward sloping support line on the CCI indicator is starting to crack as well. The blue CCI indicator is starting to break below the support line. The indicator sometimes leads a break of the price trend line. So we can time this entry on a break below the price support line.

Additional Resources

Trading Breakouts in Forex

How to Trade the Commodity Channel Index in Forex

Trading with Moving Averages

Trading Divergence

Money Management Video 1

Jeremy Wagner contributes to the Instructor Trading Tips articles.

http://www.dailyfx.com/how_to_trade_forex/course_trading_tips

To receive more timely notifications on his reports, email jwagner@dailyfx.com to be added to his distribution list.

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

DISCLOSURES