Today we going to be analysing the AUD/USD Forex pair. I am going to be analysing the day trading setup on 1 hour time frame chart.
With the French elections being hotly contested the pair opened with a nice 0.5% gap up, but failed to break the major resistance area at 0.759. Proving once again that even in highly volatile fundamental situations major support and resistance zones are still respected and the price retraced back to close the gap.
We saw the bulls take the market back for a few hours but ran out of steam posting a inverted hammer candle at 12:00 and was then followed by a strong engulfing candle, signaling a change in direction. The current candle is also strong engulfing candle. I marked both on the chart.
A close below the 0.754 area could pull this pair back to the 0.750 support area.
A Failure to break below this area and we could see a retest of the 0.76 major resistance area.
With global risk tolerance as a key determinant of the pair’s early movement, traders now look forward to a scheduled speech by Minneapolis Fed President Neel Kashkari for some clues later during the NY session. The key focus is going to be on the quarterly Australian CPI, scheduled for release during early Asian session on Tuesday.
*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.