AUDUSD Trading Outlook: The EMA Crossing Strategy

After two days of the directionless move, the AUDUSD pair as seen in this 13 April AUDUSD Trading Outlook, caught some fresh bids on Friday after the RBA Financial Stability Report (FSR) stated that the risks from high-household debt and aggressive bank lending practices have slightly abated of late. What else does  Stuart Cowell discuss?

13 April, HotForex – The Aussie continues its recovery following good import and trade figures from China overnight. The AUDJPY is at a one month high and the AUDUSD continues to build.

13 April AUDUSD Trading Outlook: The EMA Crossing Strategy

The initial turn in the AUDUSD trend we identified yesterday on the close of the 18:00 candle has ran and ran from 0.7757 through R1 and R2 in a steady trend to touch 0.7790.  A 0.42% (33 pip) overnight move. The EMA Crossing H1 strategy generated an entry at 18:00 (0.77578) – initial target from the ATR (14) of 10 pips reached 0.77678 at 06:00.

The size and breach of the R1 on the completion of the 06:00 candle, together with the rising and aligned Moving Averages, confirmed the strength of the trend and triggered a second entry at 0.7772. Target 2 was again taken from the ATR (14) for  9 pips to 0.7781.

A net gain of 19 pips from a simple two-step, two rule strategy. The stop loss has to be below or above the latest turn in the market with this approach. So at 18:00 yesterday the stop loss was at 0.7742 and at  06:00 it needed to be at 0.7761.


This article about 13 April AUDUSD Trading Outlook: The EMA Crossing Strategy was written by Stuart Cowell, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.

All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.

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