AUDUSD: Where are the Pips Today?

I like to trade the currency pairs that have the clearest market conditions… Only then I know that the odds will be in my favor…

So how do we know when the conditions are clear?

We need to look for three things:

- Clear support and resistance levels (on both, the long and short term charts)

- Clear swings

- Great profit potential

When you get all those three things in a currency pair, you will be trading with the odds in your favor.

Sometimes its not just about looking for trade opportunities, but about waiting for the right time to trade…

And that’s the case of the AUDUSD

AUDUSD Long Term analysis

Here is what the daily charts looks like:

AUDUSD Daily

As you can see, it is trading near a long term level (around 0.8731), we still dont know whether the AUDUSD is going to get rejected or break through that level. And that’s the reason we need to patiently wait for the market to break the short term range…

And that’s why we need to take a look at the short term charts.

AUDUSD Short Term Charts

Here is the hourly chart:

AUDUSD Hourly

Now, I have marked a short term range between 0.8889 and 0.8649… As long as the AUDUSD keeps trading between those two levels I’m not going to do anything.

If the AUDUSD breaks through the upper resistance level (0.8889) I’ll start to look for long opportunities.

If the AUDUSD breaks through the lower support level (0.8649) I’ll start to look for short opportunities.

Now we have a trading plan, which always helps.

What do you think about the AUDUSD? Are you currently trading it? What other currency pairs are you monitoring/trading?

Share your thoughts.