It’s been a while since I commented on the AUDUSD.
But that doesn’t mean I haven’t been watching it.
I track all of the major currency pairs, and I’m especially interested in them now given the increase in volatility.
I certainly don’t want to be stuck in an illiquid cross when volatility strikes.
Look no further than the recent 1,000 pip daily swings from a cross like the GBPAUD.
I’ve also been more interested in the NZDUSD than the AUDUSD.
WE RECOMMEND THE VIDEO: Best Forex Trading Strategies | Forex Trading Tutorials Part-1
Best Forex Trading Strategies | Forex Trading Tutorials Part-1 100% Working Secret Strategy For Gold | Functions OF Forex Trading | Best Forex Trading ...
In my opinion, the New Zealand dollar technicals are superior to the Australian dollar in every way.
Get FREE Access to Daily Price Action When You Open and Fund an Account With Blueberry Markets!
That doesn’t mean the AUDUSD isn’t favorable, though.
And much like its New Zealand counterpart, the AUDUSD is retracing its footsteps following the March selloff.
That’s a good thing for those who share a bearish outlook.
If you ask me, the only real play here is to sell strength.
Could the AUDUSD climb higher from current levels?
Of course, but the reward isn’t worth the risk.
If you seek asymmetric returns as I do, then the only option is to play this as a correction within the broader downtrend.
With that in mind, here’s what I’m watching:
Last Wednesday’s session sold off hard from the 0.6450 area, which now becomes the “hinge” for higher or lower prices.
If the AUDUSD recovers 0.6450 on a daily closing basis, we could see prices push higher into 0.6670.
On the other hand, sub 0.6450 prices leave the AUDUSD vulnerable where a close below rising wedge support near 0.6330 would attract sellers.
A break lower would expose 0.6200, followed by 0.6000 and 0.5730.
Always assume consolidation will last longer than you expect.
That will help keep your initial position sizes in check, and also keep you sane when a market stays buoyant longer than they probably should.
Want to watch the AUDUSD video I just released in the member’s area?
Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in April!
Leave a Comment:
10 comments
Want me to help you become a better Forex trader?
Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 3,000 members, daily videos of trade ideas, direct access to Justin, and much more!
Save 40% on a lifetime membership in April!
Thank you Justin, so clear.
I am looking for the same bearish outlook on this pair and if we take out a fib retr from the last higher low(0.7030) we can see that price was rejected from the 61.8 fib level in confluence with the resistance zone forming a bearish engulfing candle on the daily timeframe. Going down to the H4 i took a short position ofcourse with calculated risk from 0.6380given the inside wedge if you go down to the H1 meeting all my criterias
I paid you my money for access to the members area. How come I never got access.
Don, the invitation email was sent to you on July 26th of last year at 6:28 pm EST. It’s most likely sitting in your spam folder.
I just resent it, but do check all of your folders.
Hello Sir Justin,
Please what are the values of those two moving averages in your charts?
Thank you for being helpful.
Thank you so much sir .
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.
Saturday, 3 November 2018