trading course Click  here to gain access to a free trading course  from INO - Market Club.
AUDUSD Technical Update – March 5th – Price Action Analysis

AUDUSD Technical Update – March 5th – Price Action Analysis

AUDUSD Technical Update – March 5th – Price Action Analysis

  • The RBA (Reserve Bank of Australia) has held the benchmark interest rate at 3%, a half-century low, and the Australian dollar has gained broadly.
  • The AUD/USD made a bearish breakout yesterday, but subsequently pared back earlier losses to close the day as a hammer candle/pinbar on the daily chart, potentially trapping shorts.
  • The last time the AUD/USD printed a similar – albeit inverse – price action setup  (which was likewise countertrend) was on the 14th September and this essentially marked the highest point since that date (see D1 chart below).
  • Price is currently consolidating around the 1.0230 mark, an area coinciding with the 12/2/13 and 21/2/13 daily lows.
  • The AUD/USD pair has today covered 59 pips100% of the ADR (60 day average daily range).  Yesterday had the pair covering 91 pips on increased volatility, this can be seen with the extended lower shadow on Monday’s candle.
  • The USDX (dollar index) has seen an extension of the decline from yesterday and is trading around the 82.00 handle – a retest of the recently passed 61.8% Fibonacci level.  
  • The US dollar has seen broad strength over recent trading with positive sentiment towards the greenback gaining traction and associated safe haven flows. The risk remains for a continuation of the dollar strength scenario if AUD/USD 1.0170 area support gives way.

audusd AUDUSD Technical Update   March 5th   Price Action Analysis

audusd technical analysis 5th march1 AUDUSD Technical Update   March 5th   Price Action Analysis

Nick Simpson, Forex-FX-4X.com

Leave a reply