While the headlines may
sound pessimistic as the aussie lose ground against the dollar and yen today
reaching new lows for July, let’s not get too dramatic as we’re only nine days
into the new month. The disappointing NFP-fueled sell-off did comm-dolls like
the AUD/USD no favors, UNLESS you were an aussie bull waiting to capitalize on
a pullback.
The AUD/USD has been in an uptrend
thanks to the strength of the Australian dollar will has been gaining on even the
strong greenback.
Past performance is not indicative of
future results
The
AUD/USD daily time frame has all the signs of new but bullish trend: The green
GRaB candles, “twelve to two o’clock” angle of the 34EMA Wave. And up until the
NFP sell-off, the pair was perched atop the 200DMA. The recent pullback however
has set up a trend –following swing buy. The only downside is that the aussie
has to continue to outpace the greenback’s strength the continue higher.
The swing buy is valid as long as the angle
of 34EMA Wave remains at a “twelve to two o’clock” angle confirming the uptrend
and the majority of the GRaB candles remain green. A blue neutral GRaB candle
could indicate a deeper correction while a red would be a break of a 34EMA Wave
and ultimately could signal the swing buy being stopped out.
Past performance is not indicative of
future results
The
U.S. Dollar Index is retreating from 83.60 and just seven ticks shy of the prior
high at 83.67. This could be the confirmation of an early look at a daily
double top allowing the aussie a near-term window to accelerate against some
temporary weakness in the greenback.
Past performance is not indicative of
future results
It’s
also worth mentioning that gold is back below 1600/oz but that also this market
has no trending Directional Bias so it is ultimately bouncing from oversold and
overbought levels. The recent push through 1600 certainly did not hurt the
aussie.
The AUD/USD has “dueling” set ups
today with the daily swing buy and intraday (30 and 60-mimute) swing shorts.
However remember that the shorts are counter the daily trend and therefore
should be considered just near-term entries while respecting that the aussie
has been overall stronger than the greenback. The intraday shorts could be
viewed as a way to capitalize on the near-term weakness that is needed for the
daily correction and in this way is what I call a “one thing leads to another”
set up where the intraday shorts “feed” the daily swing buy.
As an
active forex trader and Chief Currency Analyst for InterbankFX.com I do write
for a number of sites all over the web and I am happy to say that I will be
posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this
update to a friend via email, post it on Google or Facebook or simply print it
out for reading later.
Forex trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for IBFX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
While the headlines may sound pessimistic as the aussie lose ground against the dollar and yen today reaching new lows for July, let’s not get too dramatic as we’re only nine days into the new month. The disappointing NFP-fueled sell-off did comm-dolls like the AUD/USD no favors, UNLESS you were an aussie bull waiting to capitalize on a pullback.
The AUD/USD has been in an uptrend thanks to the strength of the Australian dollar will has been gaining on even the strong greenback.
Past performance is not indicative of future results
The AUD/USD daily time frame has all the signs of new but bullish trend: The green GRaB candles, “twelve to two o’clock” angle of the 34EMA Wave. And up until the NFP sell-off, the pair was perched atop the 200DMA. The recent pullback however has set up a trend –following swing buy. The only downside is that the aussie has to continue to outpace the greenback’s strength the continue higher.
The swing buy is valid as long as the angle of 34EMA Wave remains at a “twelve to two o’clock” angle confirming the uptrend and the majority of the GRaB candles remain green. A blue neutral GRaB candle could indicate a deeper correction while a red would be a break of a 34EMA Wave and ultimately could signal the swing buy being stopped out.
Past performance is not indicative of future results
The U.S. Dollar Index is retreating from 83.60 and just seven ticks shy of the prior high at 83.67. This could be the confirmation of an early look at a daily double top allowing the aussie a near-term window to accelerate against some temporary weakness in the greenback.
Past performance is not indicative of future results
It’s also worth mentioning that gold is back below 1600/oz but that also this market has no trending Directional Bias so it is ultimately bouncing from oversold and overbought levels. The recent push through 1600 certainly did not hurt the aussie.
The AUD/USD has “dueling” set ups today with the daily swing buy and intraday (30 and 60-mimute) swing shorts. However remember that the shorts are counter the daily trend and therefore should be considered just near-term entries while respecting that the aussie has been overall stronger than the greenback. The intraday shorts could be viewed as a way to capitalize on the near-term weakness that is needed for the daily correction and in this way is what I call a “one thing leads to another” set up where the intraday shorts “feed” the daily swing buy.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner