Forex Trading: Australian Dollar breakout continues

by Joe Oliver, Forex Trading-Pips

Forex Trading: Last Friday in our Forex Blog Update¬†we pointed out that the Australian Dollar had formed two inside bars with Thursday’s session trading in a Nr7 (narrowest range of the past 7 trading days) and a breakout move was likely. The Australian Dollar has since appreciated by over 160 pips following last Friday’s breakout move.

One of the advantages of trading inside bar breakouts is that stop losses can be placed reasonably closely to the breakout point (typically on the other size of the inside bar), thereby allowing traders to maximise size, whilst minimizing risk.

Forex Trading Australian Dollar daily bars

Forex Trading Australian Dollar daily bars

 

 

 

 

 

 

 

The Federal Reserve’s pledge yesterday to keep interest rates low until late 2014 is serving to boost ‘risk on’ sentiment across the financial markets and putting downward pressure on the US Dollar.

 

Forex Trading US Dollar Index

Forex Trading US Dollar Index