AUDUSD: Short Setup at Key Pullback Zone
Technical Analysis:
Weekly Chart: Weekly price action was heading into a key area, making it difficult to decide on a direction. However, last week's strong bearish candlestick with a lower low and lower close suggests a clear bearish direction for this week.
Daily Chart: Recent daily price action with lower lows and lower closes indicates a downward trend. Friday's price action supports this view, though the price is currently sitting on top of a daily horizontal level. Therefore, manage your short trades more conservatively.
4-Hour Chart: For a short position on the 4-hour chart, we are waiting for a pullback to 0.6714/21 to go short.
Sell Limit Entry: 0.6714/21
Stop Loss: Above 0.6727
Target: 0.6680
Fundamental Analysis:
There’s not much happening with AUD except for the Flash Manufacturing PMI on Wednesday, July 24th.
USD, on the other hand, is quite tricky with several scheduled news events this week: Flash PMI on Wednesday, US Durable Goods Orders, US Jobless Claims, US Q2 Advance GDP on Thursday, and US PCE on Friday. It will be a relatively peaceful week in terms of Fed speeches due to the blackout period before the next FOMC meeting on July 31st, where the Fed is likely to hold the interest rate.
Political tensions in the US should also be considered:
Hope you have a fantastic week ahead. Happy trading!
Weekly Chart: Weekly price action was heading into a key area, making it difficult to decide on a direction. However, last week's strong bearish candlestick with a lower low and lower close suggests a clear bearish direction for this week.
Daily Chart: Recent daily price action with lower lows and lower closes indicates a downward trend. Friday's price action supports this view, though the price is currently sitting on top of a daily horizontal level. Therefore, manage your short trades more conservatively.
4-Hour Chart: For a short position on the 4-hour chart, we are waiting for a pullback to 0.6714/21 to go short.
Sell Limit Entry: 0.6714/21
Stop Loss: Above 0.6727
Target: 0.6680
Fundamental Analysis:
There’s not much happening with AUD except for the Flash Manufacturing PMI on Wednesday, July 24th.
USD, on the other hand, is quite tricky with several scheduled news events this week: Flash PMI on Wednesday, US Durable Goods Orders, US Jobless Claims, US Q2 Advance GDP on Thursday, and US PCE on Friday. It will be a relatively peaceful week in terms of Fed speeches due to the blackout period before the next FOMC meeting on July 31st, where the Fed is likely to hold the interest rate.
Political tensions in the US should also be considered:
- Trump positive = dollar bullish
- Biden/Democrat positive = dollar bearish
Hope you have a fantastic week ahead. Happy trading!
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