AUD/USD trapped near 0.7200 as investors await headlines from China on trade.
Trapped near familiar levels as markets keep their eyes open for China news.
With trade talks likely going nowhere, odds of a positive break for trade talks bodes poorly for the Aussie.
AUD/USD continues to trade around the 0.7200 key level this week, as Pacific markets struggle to pick an overall direction and broader market sentiment remains underbid but refuses to fall as traders await a push from China trade issues.
The Aussie has spiraled around the 0.7200 figure since last Friday as the Antipodean continues to trade in an uninspired fashion, with the broader Pacific-Asia region hanging on for news from US-China trade talks as investors hope for a de-escalation of trade tensions in the region, and even late Tuesday’s disappointing showing of the Australian Westpac Consumer Confidence reading for January couldn’t derail the overall mood, with the indicator sliding from 0.1% to a worrying -4.7%, but Aussie traders continue to keep their eyes locked on China, and with no details forthcoming for the time being, AUD/USD is left to continue spinning its wheels near the key price handle.
CANDLESTICK STUDY: The Doji
A Doji is formed when the opening price and closing price of a session are equal, signifying price equilibrium or more importantly indecision between bulls and bears. As such the Doji can be a signifier of both trend reversal or continuation. For trade setups the Doji can be used in conjunction with Support and Resistance or when formed near a Trend Line. The high and low of a Doji can be used to identify potential breakouts and continuations. Traders can also use smaller timeframes to identify the contents of a Doji for clues on upcoming market direction.
Be advised that TRADE SET-UP outcomes are unknown! Market Timing is subject to unpredictable events that may adversely affect the outcome of each trade. Please use appropriate Capital Management.
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