Where are the Channel Traders? AUDCHF
Hey Traders,
AUDCHF is a very interesting pair. We've broken structure in both directions on the one hour chart. This usually indicates to me that we may start seeing a bit of a range trading opportunity while the market is very conflicted on which way to go.
Obviously the Aussie dollar budget was released yesterday which had a large impact on the market. It still can indicate that were a little unsure where to go being the initial budget release witnessed the market taking negative impact from that, but overall I have a bullish sentiment when looking into the Aussie dollar. We're looking at good employment growth. we have good retail sales data (actually better than expected retail sales data). The PSI is looking really good. So there's a lot of different things that are indicating bullish Aussie dollar.
So as we sit in this range trading area, you can kind of see we've got strong supply up the top. While it's a large supply area, it is strong supply up the top. On the opposite side of the spectrum, we also have very strong demand down the bottom. You can see it pushed that previous higher high in order to break structure prior to moving into this range trading area.
As you can see with the orange box, we have quite a conflicting idea on where the price is going to go. Will we stay inside of this orange box? Will we push up and use the two purple boxes of supply and demand in order to trade sideways? Or am I wrong and are we just going to rip through either one? It's very interesting chart to be looking at and on the long term, as I previously stated, I'm still thinking bullish Aussie dollar. So if anything, I'm going to be looking to buy in these bottom areas of demand to take it to the higher levels.
If you guys have any questions or any comments on this, please do let me know below I reply to them as soon as possible and as always guys have a very profitable trading week.
AUDCHF is a very interesting pair. We've broken structure in both directions on the one hour chart. This usually indicates to me that we may start seeing a bit of a range trading opportunity while the market is very conflicted on which way to go.
Obviously the Aussie dollar budget was released yesterday which had a large impact on the market. It still can indicate that were a little unsure where to go being the initial budget release witnessed the market taking negative impact from that, but overall I have a bullish sentiment when looking into the Aussie dollar. We're looking at good employment growth. we have good retail sales data (actually better than expected retail sales data). The PSI is looking really good. So there's a lot of different things that are indicating bullish Aussie dollar.
So as we sit in this range trading area, you can kind of see we've got strong supply up the top. While it's a large supply area, it is strong supply up the top. On the opposite side of the spectrum, we also have very strong demand down the bottom. You can see it pushed that previous higher high in order to break structure prior to moving into this range trading area.
As you can see with the orange box, we have quite a conflicting idea on where the price is going to go. Will we stay inside of this orange box? Will we push up and use the two purple boxes of supply and demand in order to trade sideways? Or am I wrong and are we just going to rip through either one? It's very interesting chart to be looking at and on the long term, as I previously stated, I'm still thinking bullish Aussie dollar. So if anything, I'm going to be looking to buy in these bottom areas of demand to take it to the higher levels.
If you guys have any questions or any comments on this, please do let me know below I reply to them as soon as possible and as always guys have a very profitable trading week.
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