FX.co ★ torp.paris | AUD/USD

Trading Strategy Based on Daily Pivot Points, Momentum, and Trend Direction

Daily Pivot Point Support 3: 0.6926 Support 2: 0.6948 Support 1: 0.6977 Pivot Point : 0.6999 Resistance 1: 0.7028 Resistance 2: 0.7049 Resistance 3: 0.7078 The movement of the AUDUSD currency pair on the H1 timeframe still shows a tendency to move in a consolidation phase after previously experiencing a fairly strong rally. The current price is around 0.7002, very close to the daily Pivot Point at 0.6999, which indicates a balance area between buying and selling pressure. As long as price holds above that pivot level, the potential to continue strengthening remains open. However, if price falls back and convincingly breaks below the pivot, then selling pressure could increase toward the next support areas. From a trend perspective, price is still positioned above the main Moving Average line, so the short-term bias remains bullish. The upward-sloping MA line shows that buyers still control the trend structure even though current momentum is starting to slow. The latest candles are relatively small in size, indicating a wait-and-see attitude from market participants before deciding on the next direction. Conditions like this often become a preparation phase before a larger move appears. The Stochastic (5,3,3) indicator is around the mid-level with the main line starting to turn down after previously rising. This shows that bullish momentum is beginning to weaken, but has not yet given a truly strong reversal signal. As long as the indicator remains above the oversold area, upside potential is still available if a stronger wave of buying volume emerges. The daily Pivot Point levels are an important reference in determining trading strategies. The Support 1 area at 0.6977 becomes the first zone to watch if price undergoes a correction. If selling pressure strengthens, then the next downside target is at Support 2 at 0.6948, while Support 3 at 0.6926 becomes the last line of defense for the short-term bullish trend. On the other hand, if price is able to hold above the Pivot Point 0.6999 and successfully breaks through Resistance 1 at 0.7028, then the upside potential toward Resistance 2 at 0.7049 becomes more open. If buying momentum strengthens further accompanied by a valid breakout, then the next target is at Resistance 3 at 0.7078. Buy Strategy The buy scenario is more attractive if price is able to hold above 0.6999 and forms a strong bullish candle. Additional confirmation can come from the Stochastic turning back up and an increase in trading volume. The first profit target is at 0.7028, then 0.7049, and if momentum remains strong it can be extended up to 0.7078. A stop loss can be placed below 0.6977 to anticipate a change in market direction. Sell Strategy Short opportunities can be considered if price fails to hold above the Pivot Point and drops below 0.6999 accompanied by a strong candle close below that level. The first downside target is at 0.6977, followed by 0.6948, and the final target at 0.6926 if selling pressure becomes more dominant. A stop loss can be placed above 0.7028 to limit risk in case of a false breakout. Conclusion Overall, AUDUSD H1 still has a bullish tendency as long as price holds above the Pivot Point 0.6999 and remains above the Moving Average. However, the weakening momentum requires traders to wait for breakout confirmation before opening new positions. The best strategy for now is to use the Pivot Point levels as the main reference, focusing on buy opportunities above 0.6999 and sell opportunities if price moves back below that level. Discipline in applying risk management and waiting for signal confirmation will help improve the quality of trading decisions amid market conditions that are still moving in a consolidation phase.