FOREX Chart Of The Day: How To Trade AUDUSD Short
Hi, and welcome to this blueberry Markets video update with me, John Kibbler, head currency analyst.
In this video, we’ll talk about AUD/USD. Price has hit our targets, which again, nice try coming in for us. We lost the previous trade down here, and now we’ve got one back which is great. Looking for the downside on Aussie to continue. We do have a little bit of an obviously a supporting point just through here.
So there’s a couple of things that could happen from this point. Obviously, strength and weakness are suggesting that the market is more than likely going to break this level and continue to the downside. So for end-of-day traders or people that like to look for the more of a long-term swing position, what I’d be considering here is if we get a daily close below here today and a second daily close.
All I’m looking for then would be a pullback into the zone, looking for some bearish price action and tried short again, very much like we did here. We looked at the market filing to break this high, lots of indecision going on here.
The market breaking higher, closing back within candlestick ranges. That was our reasoning to look for that short position. I’d look for the exact same thing going on here.
Alternatively, if the price does find some kind of support here. I don’t think it will. But if it does, then we could rally back up to this level here. We could be seeing a little bit of a consolidation move out of this market.
So again at the end of day position, you could look for the market to rally back to the highs and then look for some bearish candlesticks again to look for that further shorting opportunity. I like Aussie short, I think this is a good market to look for those short positions.
Looking at the four-hour time frame, currently price is just holding in this area. Again, if you’re looking at more of an intraday move or looking for a bit of a shorter-term move a couple of different options for you.
Now, I like the idea of price pulling back into this little area here. What we could see as well as a pullback into this zone and a continuation. So, you could look for a short-term, short possibility off this low back down into these lows through here. If the market then continues, you can look for further shorts on the move to the downside through here. But I really like the opportunity on Aussie. Again, another option you could look for is a break below, but really just identifying that. I like this market short, and those are some key areas that you should keep an eye on.
For end-of-day traders, it’s going to be slightly different or longer time-frame trying does it’s going to be slightly different because you’re only looking for larger moves. So you want to see higher time frame levels being hit. But as intraday traders, you could look for four-hour pullbacks and continuations. Hopefully, we get a break of this low today. I think we do get that that’ll confirm some downside to us.
We’re just going to the weekly time frame. I’m really expecting Aussie to kind of drop back down into that 0.7 level, a really nice level that’s been kind of tested sort of this year and last year which has been quite useful. So, I’m expecting the pullback to come down to this point.
Looking at the weekly as well we’re in that overbought condition. The last couple of times we’ve been at that sort of area and we’ve seen some good moves out of Aussie. You can see here for instance some big moves just through there. Obviously, that was a huge downside move. We have this move in here. Obviously, this one didn’t come through full effect as we expected to but, we are starting to see some more bearish candles here.
So, Aussie to me is looking good for some downside. Those are the key areas to watch from different trading points of view, and I hope you enjoyed this video update, and I’ll catch you in the next one.
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