AUDUSD – Price Consolidation

05 Jun - AUDUSD Daily Forex Chart

 

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Hi All,

Here’s a quick update of what I’m watching. As mentioned on the 25th May (see article), the AUDUSD has been consolidating in a clear range. While we know that Non-Farm is just around the corner, this consolidation did in fact start nearly 2 months now. Hence, even though Non-Farm could be a catalyst or trigger, it should not be the reason any more.

What does this mean?

Well, a consolidation just means an indecision. Nonetheless, if you were to look at the charts carefully, price isn’t consolidating for no reasons. Price is  currently testing a strong Resistance level around 0.94 (see article). The bulls are strong yet the bears are not giving in yet. The tug-of-war on that resistance level just shows that this level is significant to the market and whoever wins here will show dominance in the market for the near to mid future.

In my book “The Secrets of Trading The First Pullback“, I explained the importance of market extremes and this is one of the examples of a market extreme that was followed by multiple clues (see article) that price was moving north.

Now, the battle continues.

 

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