After consolidating for most of the week, the Dollar had enough bullish presence to make a run at 94.500. As a result, traders are seeking short for AUDUSD as the price presents bearish cues.
During the London session, Dollar bulls were able to push past short-term resistance at 94.200 and now the price is looking to clear 94.500. This level has prevented bulls from going higher twice in September and will prove difficult to break. A successful breach of this level will lead the price to 95.000.
Price action traders found a common fake-out trade setup for AUDUSD. Price cleared a previous high and thus ‘faking out’ traders to go long. Shortly after this, the price closed bearish back in the range. This could lead the price back down to the range low of 0.71200.
Tomorrow is the long-awaited Non-Farm Payroll release. This event is notorious for its volatility and it is recommended that traders avoid trading this event. It is best to be out of any trades or to minimize any risk for open positions.
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