As the US Dollar gains strength, most of the majors vs the Dollar lose value. Aussie Dollar is no different. The AUDUSD currency pair, range bound within 0.71 and 0.77 levels on the weekly chart since more than 50 weeks. Its currently displays a bearish trend as clearly indicated by two consecutive bear candles on the weekly. Most recent bullish price action can be found within the rectangular range. So essentially we are looking for AUDUSD to reach these areas for a buy signal. At these levels a solid reversal will be expected. For next few weeks though its more a southward move.
For intra-day trading, we outline a strategy on an hourly chart using Commodity Channel Index (CCI - 20 for example). Cross-over at the upper range of CCI can be used as a Short Signal. On the contrary, cross-over at the lower range of CCI can be used as a Long Signal for quick intra-day trade gains. This strategy can be tweaked with different CCI attributes for different duration charts. Fine tuning will allow individual traders focus on accurate signals and avoid any fake signals. Tweak the numbers to suite individual risk / reward style. Good luck Trading!