Forex Price Action Setups – AUD/USD Squeeze Happening? June 27th

AUDUSD
After bouncing and continuing higher from the pin bar we mentioned yesterday, the 1hr chart on the Aussie looks like the bulls are squeezing out the bears trying to take out the short term resistance at 1.0089.  Although the bounce off the oversold lows the other day has the presence of being more corrective than impulsive, the short term picture although timid favors more upside.

We just climbed for 3hrs in a row and the 20ema continues to underpin this pair on pullbacks, with no close below it since yesterday.   The recent doji right above the prior close highs at 1.0076 looks like the final presence of the bears being pushed out, thus we are favoring an upside break by early Tokyo trading. Upside targets are 1.0110 and 1.0130 while protection below the 20ema.  A breakdown here would need to take out 1.0045 which would suggest more unwinding.

price action squeeze 2ndskiesforex.com june 27th

For more info on how to trade price action, get access to the traders forum, lifetime membership & a lot more, make sure to visit my price action course page here.

Global Market Commentary:
Global stocks rose solidly as US durable goods and pending home sales surprised to the upside favorably giving a short term positive note to chew on.  The Euro continues to be pressured as it appears another country might be asking for a bailout soon (Slovenia – shortly after Cyprus just did).

European leaders are still at a stalemate with Monti threatening if he doesn’t get his Eurobonds (read he needs them to bailout Italy’s €1T of debt) while Frau Merkel continues with the Nein Mantra also pushing aside calls from Spain for action as well. This trader doubts the Euro Summit will achieve anything meaningful or substantial and when this doesn’t the Euro will be under more pressure.

The DOW gained 92pts or .74% while Crude finally rose above the $80 figure.

FYI a lot of economic announcements tomorrow so expect some strong volatility.

Upcoming Economic Announcements:

AUD HIA New Home Sales (MoM)01.00GMT21.00EST
NZD NBNZ Business Confidence01.00GMT21.00EST
EUR German June Unemployment Data Released by Federal Labor Agency01.30GMT21.30EST
GBP Nationwide House Prices n.s.a. (YoY)06.00GMT02.00EST
GBP Gross Domestic Product (YoY)08.30GMT04.30EST
EUR Euro-Zone Business Climate Indicator09.00GMT05.00EST
USD Gross Domestic Product (Annualized)12.30GMT08.30EST

 

Check out my newest video on Trading & The Mindset of Abundance 

 

Want More? My private members get all my trade setups & commentary daily. Click here to become a member.

Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

Related Article

Comments on the article

Your email address will not be published.

Discussion

1 Comments on the article

  • Amis - August 9, 2012 11:54 pm

    Hello Chris

    I could see one more doji (15 candles prior) to the one you mentioned and the formation was also quite similar.So could you tell me what was special about the recent doji formation which made you say that the sellers have been taken out

    Thanks

    Amis