AUDUSD Confirms Above Ichimoku – Forex Trading Strategy

AUDUSD Confirms Above Ichimoku

Surprise, surprise! AUDUSD confirms above Ichimoku on the daily chart and we have HOT strategies to share with you. Read on for Invest Diva‘s IDDA approach to strategy development.

AUDUSD Confirms Above Ichimoku | Technical Analysis

Back within a new upward channel, the AUDUSD confirms above Ichimoku signaling further up-moves towards medium-term pivot level of 0.78.

However with the Ichimoku cloud flattening, this upward cycle could be short-lived and the pair could continue ranging up-and-down within the upper and lower bands of the channel.

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23% and 38% Fibonacci retracement levels are our active pivot levels at the moment and only a break above or below them could indicate a longer-term trend formation.

AUDUSD Confirms Above Ichimoku – Technical Analysis

Supports are set at 0.7250 and 0.6950 in extension, while long-term resistance levels are set at 0.8150 and 0.8450 respectively.

Hot Market Moving Events Coming Up…

During the London session today we could see some trading opportunities in the CHF crosses as UBS Consumption Indicator (AUG) is released first thing at 6 AM GMT. Later the KOF Leading Indicator (SEP) is out of Switzerland at 7 AM which  is designed to predict the direction of the economy over the next 6 months.

USD Moving events this week: 

During the New York session on Wednesday the high-risk Durable Goods Orders  for August is scheduled to be out at 12:30 PM GMT, expected to have dropped to -1.0% from previous 4.4%. Because orders for goods have large sway over the actual production, this figure serves as an excellent forecast of U.S. output to come.

Later watch out for FOMC member speeches at the end of New York session. During the next day’s Asian session Japan will release their retail sales at 11:50 PM GMT to end the trading day.

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On Thursday,  the US will dump a ton of data right at 12:30 PM GMT including Gross Domestic Product (GDP), and Initial Jobless Claims. Fed head Janet Yellen is due to address minority banking at 8 PM GMT. On Friday the Revised UoM Consumer Sentiment will be out of the US at 2 PM GMT.

Market Sentiment – AUDUSD Confirms Above Ichimoku

Market sentiment currently agrees with our bullish scenario. Looking to go against the crowd, the ratio of long to short positions in the AUDUSD stands at -1.42 as 41% of traders are long. That means the majority of the trading crowd on one of the largest forex brokers in the world are bearish on AUDUSD. Cue: bullish signal.

Trading Strategy – AUDUSD Confirms Above Ichimoku

Putting the technical, fundamental and sentimental points of the IDDA approach together, the medium-term bullish strategy seems to have a higher risk-reward ratio.

Bullish Scenario:

Depending on your risk tolerance, you can target 0.770 and 0.78 in extension.

Bearish Scenario:

Only a break below the Ichimoku cloud would change our medium-term outlook back to bearish.

Stay tuned for market updates and signals on that my fellow invest divas.

Here are Invest Diva’s calculations for important AUD/USD approximate levels to keep an eye on:

Support Levels Turning Point Resistance Levels
0.6950 0.7450 0.8150
0.7250 0.78 0.8450

 xoxo

Kiana 喜愛成
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