AUD/USD – Quick and Dirty

Traders often use a higher timeframe chart on a currency pair (daily or weekly) to determine overall trend, and a shorter timeframe (hourly, 5 minute) for entry and exits of trend based trades. For mine, both charts and fundamentals have turned bullish AUD/USD – and the hourly chart is signalling……..

First, here’s the daily chart:


For mine, the downtrend is broken. This lines up nicely with what I see as a fundamental shift. The oversold situation in USD is easing, allowing further USD falls (ie AUD/USD up). And a modest improvement in jobs in Australia reported yesterday cracks the down trend in jobs data locally.

So, where to enter?

AUD/USD Hourly

The three candle pattern on the right is close to a “morning star”, and has the important characteristics – a fall, an indecision candle (doji), and then a rise. This gives me an entry signal and levels for the following:

Buy AUD/USD at current market above 1.0265, stop loss below 1.0248

1.0265 is the high of the fall candle, 1.0248 is the low of the indecision candle.

About michaelmccarthycmc

Chief Market Strategist - CMC Markets and Stockbroking Regular on ABC, BBC, Bloomberg, Channel TEN, CNBC, SBS and SKY
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4 Responses to AUD/USD – Quick and Dirty

  1. Desmond says:

    Hi Michael, it is currently within a triangle formation and perhaps may be better to enter on the break to the upside, say 1.0276?

  2. Desmond says:

    I see the triangle on the the Hourly chart.
    It has since made a nice strong move up!

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