Recap: Welcome back PipHutters! No trades were taken yesterday as the markets remained too choppy/risky for us to get a high probability swing signal off. We are not wild about the current market conditions either but a) we wanted to provide you a market update and b) there are some setups (not just this pair) that are worth trading today.
Today's Important News Events:
|01:30||AUD Consumer Prices Index (YoY) (1Q)||2.2%||3.1%|
|*To see a more extensive list of news events (not just those we consider important), visit our Forex Calendar.|
Choppy price action has been a direct reflection of the choppy fundamental conditions we are seeing in the world economies of late. Those fundamental conditions have illustrated a global recovery that is uneven and at best, and it doesn't help that it appears to be driven almost entirely by central bank action - not true market growth.
Technically we are slightly more bullish than bearish in the short term thanks for the higher high of last week on top of the string of higher lows the past couple weeks (mild uptrend).
Trading Idea: In the midst of of these mixed charts we are tracking a rising trend support (bottom blue line) and we will look to get short on a break below with targets at 20/20/25/25 for 90 pips profit. We will look to close and get long if a new falling resistance forms and breaks.
Aggressive traders could look to get long on a bounce off this rising support with targets at 20/20/20/20 for 80 pips.