I thought we had a smooth 60-point trade to go along with our Monday morning coffee, but our 1.2630 bids came up a few points from being filled. No problem, on to the next setup as the dollar continues to flash signs of weakness.

I have been watching this big Aussie daily chart setup for a few weeks now and just today we pushed down into the Fib support zone consisting of three distinct ratios. Time to go on alert and watch for entry setups. 
 

The 30-minute chart is showing a tight little consolidation pattern highlighted in blue that will serve as a good entry trigger. Wait for a break through resistance to a trade just below 0.7350, say 0.7345, before bidding for a re-test of the breakout point at 0.7325-30. Stops go below 0.7300 and the initial target on a small portion of your position will be the gray downtrending line at 0.7375. If that limit gets executed, trail your stop on the remaining position to breakeven for a move towards 0.7500.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.