Forex Trading: Australian Dollar, consolidation breakout?

by Joe Oliver, Forex Trading-Pips

Forex Trading: Australian Dollar has been steadily appreciating over the past five weeks. Sovereign-debt sales in Europe signal that the region’s fiscal crisis is being contained and are serving to boost investor demand for higher yielding risk assets.

The medium term trend in Australian dollar is up with the past two trading days forming consolidation ‘inside bars’. Inside bar consolidations typically precede breakout moves.

Note below the squeeze in AUD on the 60 minute time frame, indicated by red dots on the squeeze histogram.

Forex Trading Australian Dollar 60 minute bars

Forex Trading Australian Dollar 60 minute bars

 

 

 

 

 

 

 

Australian Dollar has formed inside daily bars for the past two trading sessions with Thursday’s session trading in an Nr7 (narrowest range of the past 7 trading sessions).

Forex Trading Australian Dollar daily bars

Forex Trading Australian Dollar daily bars

 

 

 

 

 

 

 

Strength in Australian Dollar is more readily apparent in the cross versus the British Pound against which the ‘Aussie’ recently traded at 27 year highs.

Forex Trading Australian Dollar British Pound Monthly

Forex Trading AUD:GBP Monthly Bars

 

 

 

 

 

 

 

Australian Dollar is also trading close to record highs versus the Euro.

Forex Trading AUD.EUR Monthly

Forex Trading AUD.EUR Monthly