Home Forex FX Play of the Day: AUD/USD Consolidation Forward of High-Tier U.S. Knowledge

FX Play of the Day: AUD/USD Consolidation Forward of High-Tier U.S. Knowledge

FX Play of the Day: AUD/USD Consolidation Forward of High-Tier U.S. Knowledge


I’m taking a look at one other descending triangle on one other greenback pair at present!

This time I’ve obtained this AUD/USD setup forward of the U.S. PPI and UoM client sentiment knowledge.

Greenback merchants are nonetheless taking part in it cool forward of those top-tier experiences that might possible affect Fed tightening plans, so I’m relying on greater strikes to occur as soon as the numbers are out.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Foreign exchange Chart by TV

For now, AUD/USD is caught inside a consolidation sample, forming decrease highs and discovering help across the .6520 space.

Value is bouncing off help whereas Stochastic is transferring up, suggesting that one other check of the triangle prime could be so as. This traces up with the .6550 minor psychological mark and 100 SMA dynamic resistance, which could preserve positive factors in verify.

In any case, the 100 SMA is under the 200 SMA to counsel that bearish vibes are current, so resistance is extra more likely to maintain than to interrupt.

Nonetheless, downbeat U.S. inflation experiences could be sufficient to sprint hopes of a September Fed hike, which may then translate to sharp losses for the greenback and a bullish AUD/USD breakout.

If that occurs, the pair may climb by the identical top because the triangle sample or not less than check the following upside barrier on the pivot level (.6610) close to the .6600 main psychological mark.

Then again, sturdy U.S. CPI, PPI, and UoM client sentiment figures would possibly revive FOMC tightening bets even previous the September assembly, thereby spurring a robust greenback rally.

A break under the triangle help may lead a dip to S1 (.6470) then a drop that’s roughly the identical top because the formation or 100 pips.

Unsure which path this one would possibly go? A straddle technique may work out, so long as you’re taking the common AUD/USD day by day volatility into consideration when setting entries and exits!

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