Current Context:

• Current Price: 0.6213
• Bullish Threshold: 0.62370
  • This level is just above today’s highest VWAP point and slightly above the 1st upper standard deviation of yesterday’s VWAP.
• Bearish Threshold: 0.62175
  • The price is currently trading just below this level, confirming a bearish bias at the moment.

Trade Scenarios for AUD Futures:

Bearish Setup:

• Stop-Loss: Place stops above the bullish threshold at 0.62370, and if triggered, switch to a bullish bias.
• Profit Targets:
  1. 0.62030 – Just above yesterday’s 1st lower standard deviation of VWAP.
  2. 0.61970 – Today’s developing value area low and above the January 14th value area high.
  3. 0.61850 – Above the January 14th value area low.
  4. 0.61605 – January 13th value area high, ideal for runner positions.

Bullish Setup:If the price crosses 0.62370, turn bullish with these targets:

1. 0.62460 – Below yesterday’s value area high.
2. 0.62670 – Below the January 6th and 7th value area highs.

Educational Insight: How VWAP Supports AUD Futures Trading

The Volume-Weighted Average Price (VWAP) is an essential trading indicator for AUD futures, providing insights into the average price weighted by volume. It acts as a dynamic benchmark, helping traders assess price trends and evaluate execution quality.

VWAP is calculated by dividing the cumulative traded value (price multiplied by volume) by the cumulative volume. Traders use VWAP to measure trade efficiency—buying below or selling above it indicates favorable execution. Additionally, intraday traders use VWAP to pinpoint key levels for entries and exits, as it highlights areas where price and volume converge.

For AUD futures trading, VWAP serves as a critical reference for determining bullish or bearish thresholds. By combining VWAP with other indicators, traders can create more robust strategies and make informed decisions based on dynamic market conditions.

Summary of AUD Futures Analysis:

• Current Bias: Bearish
• Strategy: Traders can follow the bearish bias with stops near 0.62370 and the outlined profit targets. If bullish conditions emerge, switch bias above 0.62370 with the associated targets.
• Reminder: Always trade at your own risk. Manage positions carefully and adjust stops and targets according to market volatility.

Why This Analysis Matters for AUD Futures Traders

This AUD futures analysis equips traders with actionable levels and insights for the 6A March 2025 contract. By focusing on VWAP and key price levels, it provides a reliable framework for making informed trading decisions. Whether the market moves toward bearish profit targets like 0.62030 or bullish targets like 0.62460, this AUD futures strategy helps traders prepare for multiple scenarios.

Trade the Aussie Dollar at your own risk only and visit ForexLive.com for additional views.

This article was written by Itai Levitan at www.forexlive.com.