Forex Chart Of The Day: AUDUSD To Trade Lower?

The price of AUDUSD continues to auction lower as the risk remains high. Could this offer short trading opportunities?

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AUDUSD Analysis

The price of AUDUSD is under pressure this week influenced by the risk sentiment in the market. The strength of the USD after the Federal Reserve Chairman Powell’s comments about rates. This saw stocks and gold fall which has a longstanding correlation with the price of AUDUSD. This gives us an idea that if these markets remain bearish the price of AUDUSD should too. 

Looking at the 4hr chart with the monthly volume profile levels we can see that price is trading within July’s value area. This should see the price continue to the other side of value and the monthly lows. The price on the 4hr shows a downward trend forming which shows bearish momentum. If the price was to retest the August value area low we could use this as resistance for short trading opportunities. Alternatively, if we monitor the US Session volume profiles we can look for a break and retest of the value area lows for shorter time frame opportunities.

Did you see our Gold Scalp Analysis? You can see it here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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