AUD/USD's Push Higher now Consolidating
Yesterday's commodities rally pushed the AUD/USD higher as the U.S. bank holiday held the U.S. Dollar Index in a range around 80.00. The 60 minute AUD/USD has formed a Continuation Rising Wedge Chart Pattern as prices maintain the rally on this time frame. It certainly has lost momentum as price resistance is pushing prices higher through 0.8580.
The sideways range has not transitioned the market cycle to accumulation or distribution. This means that pullbacks can be bought on short term weakness as long as the uptrend is intact. The Initial Trend (B) is cautioning against overly aggressive buying as the reading is very low and suggests very little trend strength. A bounce off the uptrend support line (A) would trigger a swing entry long. This would also mean that prices should ideally find support at the 0.8540 area. That is the low (C) of the current sideways range.
Moves like this on major financial center bank holidays can be traded. It should be done with the knowledge that the return to full participation can create drastic changes of opinion. This is exactly the scenario for today as the Labor Day weekend signals the final days of summer trading. Many traders will be returning to the office, along with trading volume and more meaningful opinion.
In the meantime buys off the 0.8540 level on the 60 minute AUD/USD can be considered somewhat aggressive swing buys. A drop below this level should be taken as a warning that prices may want to test psychological level support and the 0.8513 level (A).
For further information on this and other chart patterns visit www.autochartist.com
The sideways range has not transitioned the market cycle to accumulation or distribution. This means that pullbacks can be bought on short term weakness as long as the uptrend is intact. The Initial Trend (B) is cautioning against overly aggressive buying as the reading is very low and suggests very little trend strength. A bounce off the uptrend support line (A) would trigger a swing entry long. This would also mean that prices should ideally find support at the 0.8540 area. That is the low (C) of the current sideways range.
Moves like this on major financial center bank holidays can be traded. It should be done with the knowledge that the return to full participation can create drastic changes of opinion. This is exactly the scenario for today as the Labor Day weekend signals the final days of summer trading. Many traders will be returning to the office, along with trading volume and more meaningful opinion.
In the meantime buys off the 0.8540 level on the 60 minute AUD/USD can be considered somewhat aggressive swing buys. A drop below this level should be taken as a warning that prices may want to test psychological level support and the 0.8513 level (A).
For further information on this and other chart patterns visit www.autochartist.com
- 8 September |
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