- AUD/USD eyeing multi-year uptrend support- Short disposition during risk above 7612
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The Australian Dollar is coming multi-year uptrend support after plummeting scarcely 6% off a yearly highs. If a broader uptrend is to sojourn viable, prices will need to find a low forward of this pivotal constructional support connection in a days to come. It’s make-or-break here for a Aussie.
AUD/USD Daily Price Chart
Technical Outlook: In this week’s Technical Perspective, we remarkable that a Australian Dollar was, “approached a long-term support connection we’ve been tracking given a start of a year during 7612/37. This segment represents a vicious rhythm indicate for cost and IF damaged would risk a estimable sell-off in a Aussie.” Put simply, cost is trade only above vital uptrend support and we’re on a surveillance for an depletion low while above 7612.
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AUD/USD 240min Price Chart
Notes: A closer demeanour during cost movement see’s Aussie trade within a proportions of a forward channel arrangement with a reduce parallels serve highlighting support into 7612. A near-term embedded channel keeps a concentration reduce while next a weekly opening-range highs with a crack above 7707 indispensable to get things going. Such a unfolding targets successive topside objectives during 7748, 7780 and a 61.8% retracement during 7812. A mangle / daily tighten next 7612 would nullify a annulment play and keep a short-bias in concentration targeting 7552 corroborated by 7501 a 50% retracement during 7476.
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Bottom line: Be on a surveillance for a near-term depletion low with 7637 7612 both representing pivotal zones of interest. From a trade standpoint, I’ll preference vanishing debility into this support connection with a crack above channel insurgency indispensable to countenance a near-term reversal. Ultimately, this is a BIG turn for Aussie and a mangle next could infer depot to a multi-year uptrend – step easily until we get some convincing near-term cost action.
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AUD/USD IG Client Positioning
- A outline of IG Client Sentiment shows traders are net-long AUDUSD- a ratio stands during +1.16 (53.8% of traders are long) –weak bearishreading
- Retail has remained net-long given Mar 22nd; cost has changed 1.4% reduce given then
- Long positions are 4.3% reduce than yesterday and 11.2% aloft from final week
- Short positions are 13.6% aloft than yesterday and 5.1% aloft from final week
- We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests AUDUSD prices might continue to fall. Traders are reduction net-long than yesterday though some-more net-long from final week andthe multiple of stream positioning and new changes gives us a serve churned AUDUSD trade bias from a view standpoint.
See how shifts in AUD/USD retail positioning are impacting trend- Learn some-more about sentiment!
Relevant Data Releases
Other Setups in Play
- Weekly Technical Outlook: Monthly Open Trade Setups- Levels to Know
- EUR/USD Uptrend Remains Viable If Price Can Hold Above these Levels
- USD/JPY Price Outlook: Is a Low in Place?
– Written by Michael Boutros, Currency Strategist with DailyFX
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