Ichimoku Setup – AUDUSD Closes In Daily Kumo | Sept. 3rd

AUDUSD
After forming an inverted pin bar last Friday, the Aussie sold off heavily today forming a marubozu candle closing inside the daily kumo for the first time since June.  In the process, the chikou span has also crossed the kijun line today which further adds to the bearish Ichimoku picture.

With price action now sitting at the 1.0230 key support level I mentioned yesterday,  I think this is the last interim support level before further losses.  Below this, I’m suspecting losses to 1.0175 in a jiffy, and then 1.0100 which is where the Kumo bottom comes in, but short term bearish pressure should continue.

ichimoku kumo chikou kijun marubozu 2ndskiesforex.com sept 3rd

For those wanting to learn how to trade the Ichimoku Cloud, along with lifetime access to the Ichimoku traders forum, using rule-based systems, make sure to check out my Advanced Ichimoku Course.

Global Market Commentary:
With volumes muted today due to the Labor Day holiday in the US, a mix of market news came out with Bulgaria refusing to join the EZ for fear it would be (ahem) not the most prudent decision.  That along with Moody’s shifting the EZ’s outlook to negative while curiously maintaining the AAA rating.

Yet markets were relatively stable with potential monetary easing from Draghi this week to support bond purchases along with the Fed in their upcoming FOMC meeting.

The main loser on the day was the AUDUSD which got hammered from market open losing almost 70pips during low volumes.
The main winners on the day were precious metals which have started to break out of their flag consolidation patterns to break higher.

Keep in mind – there is a slew of rate decisions this week in virtually every major currency so be apprised.

Upcoming Economic Announcements:

AUD Current Account Balance (Australian Dollar) 01.30GMT 21.30EST
AUD Reserve Bank of Australia Rate Decision 04.30GMT 00.30EST
GBP Purchasing Manager Index Construction 08.30GMT 04.30EST
EUR Euro-Zone Producer Price Index (YoY) 09.00GMT 05.00EST
USD ISM Manufacturing 14.00GMT 10.00EST

Make sure to check out my newest articles:
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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.

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  • Adebisi Jamiu

    You are so wonderful you shed light to my trading knowledge each time i read your article and you make me improve on using ichimoku and price action.I pray that God will increase your knowledge

    Thanks

    • Glad it helped Adebisi.

      Kind Regards,
      Chris

  • ross

    Great post, thanks. Do you set up your charts to GMT/BST time or to New York close? The pivots are often in a different place given the different chart set up times but some people say that GMT/BST time/pivots are most important given that it is the centre of forex trading while others say NY close. Any opinion?

    • Hello Ross,

      Good question.

      My pivots are set to the London Session Open and my daily candles start at NY close (5pm EST). I prefer my pivots at these times, while I like my candles set to the daily close of NY but the 4hr is also crucial.

      Anyways, hope this helps.

      Kind Regards,
      Chris