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
Wall Street
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
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
AUD/USD Scalp Targets Ahead of RBA- Watch 7590

AUD/USD Scalp Targets Ahead of RBA- Watch 7590

Michael Boutros, Strategist

Talking Points

  • AUD/USD rebound at risk ahead of RBA Interest Rate Decision
  • Support 7590- bearish invalidation at 7724
  • Updated targets & invalidation levels

AUDUSD 30min

AUD/USD Scalp Targets Ahead of RBA- Watch 7590

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: The Aussie is responding to confluence support at 7590, a region we have been tracking (ironically) since the last RBA interest rate decision. This level is defined by the April 2015 low-day close and converges on a median-line extending off the March high just lower.

The pair is now approaching interim resistance at 7656/60 and is backed by 7690 – 7706 with our near-term bearish invalidation level set at the 61.8% retracement at 7724. Ultimately we’re looking for a rally to sell with a break below the proposed pitchfork off the lows targeting 7590 and a basic trendline support extending off the January low, currently around 7555/60. A break here would be needed to mark the next leg down targeting 7530 & 7491.

Keep in mind expectations are split heading into tonight’s Reserve Bank of Australia interest rate release release with the risk remaining on the side of a 25 basis points cut (meaning the consensus is slightly leaning towards a hold at 2% - but not by much). Either way, the central bank is likely to continue to increase their rhetoric in an attempt to talk down the currency and we would be looking for a rally to offer favorable short entries while below 7700. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

AUD/USD Scalp Targets Ahead of RBA- Watch 7590
  • A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders remain net long the Aussie, suggesting that the rebound remains at risk heading into the release.
  • The ratio stands at +1.01 (50% of traders are long- up 0.3% from previous day)- weak reading
  • Open interest is 0.6% higher than yesterday but remains 6.2% below its monthly average.
  • The recent flip in the ratio at the highs suggests long-bias remains at risk (bearish near-term)

Why and how do we use the SSI in trading? View our video and download the free indicator here

Relevant Data Releases This Week

AUD/USD Scalp Targets Ahead of RBA- Watch 7590

Other Setups in Play:

Looking for more trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)

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

DISCLOSURES