Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
AUDUSD has played out beautifully for us since my last post on July 24th.
I was anticipating a move lower following the break of ascending channel support near 0.6960.
At the time, the pair was trading near 0.6980.
Fast forward to today, and you can see that AUDUSD has given us a considerable 180 pips of downside in just six trading days.
Furthermore, the pair is now trading below a key level at 0.6830.
This is the June low as well as a level that supported the AUDUSD following Wednesday’s FOMC.
A daily close below this level would keep the bearish momentum intact.
It would also expose my target near 0.6750. That’s the broader channel support I mentioned on the 24th of July.
My only concern here is that we’ve now had ten consecutive losing sessions.
At some point, the pair is going to require some healthy consolidation.
But until then, I favor selling AUDUSD on strength for a move toward the 0.6750 support area.