Last week was pretty quiet for forex traders as markets took a bit of a breather after a few massive weeks. The AUD found itself in a bit of range and we managed to identify a great spot on Friday for a short trade.
The USD will be in focus on Wednesday as the US have CPI data due for release which has the potential to be a big one. Similarly, on Thursday, Australia has employment figures due for release which will be the major top-tier news for the week down under.
With that in mind, I am still happy to maintain my bearish view on the AUD/USD. It seems like a rate hike in the US is all but a certainty and that will keep things bearish for the rest of 2017 for the AUD/USD.
AUD/USD – 240 min Chart.
My focus will be on identifying short trades to go with that higher time frame momentum. For now, I like the look of the 0.7694 level as an entry point. We used that level on Friday to good success and if we can pull back to that region then I think that is a good plan. We can target the lows of the range (0.7649) as a profit target and 0.7733 as a stop loss.
If we get our price then I would have to reassess as we move toward Wednesday’s CPI figure as that has the highest chance of impacting our trade. But if we keep our stops nice and tight, I expect that we should even be able to ride that out.