In today’s live trading session, we went over the fakeouts in the major currency pairs, and then we discussed a possible sell setup for AUDJPY.
During yesterday’s live session, we covered the important topic of identifying fakeouts. We used the US Dollar Index (DXY) and the major currency pairs to illustrate this phenomenon. Yesterday’s price action suggested a bullish DXY, but as veteran traders, we knew this was only an illusion. Our prediction turned out to be correct, as the DXY continued it’s selloff to 93.00.
For the rest of the session, we went over several pairs in search of a viable trade setup. We found ourselves looking at a possible entry short for AUDJPY. We have a bearish bias for this pair because the trend has switched to a downtrend, the pair has cleared recent support, and Australian unemployment is set to increase. We will be looking to enter the trade once we clear today’s low.
Tomorrow will be a very important day, as the fundamental schedule consists of the European economic summit and the publication of US unemployment data. We may see many of the majors consolidate until tomorrow, so it may be best to shift your focus to the minor currency pairs. As always, be safe and trade responsibly!