The Australian Dollar Futures (6A March 2025) are consolidating after bottoming near 0.618 two days ago. Currently, price is trading just above today’s developing VWAP at 0.62125 and yesterday’s VWAP at 0.62080. Below is a breakdown of key levels and scenarios for day traders to monitor.

Key Levels for Australian Dollar Futures Today

Bearish Levels to Watch

• 0.62019: The closing VWAP of December 30th. Sustained price action below this level would signal bearish momentum.
• 0.61925: December 31st Point of Control (POC), a key price magnet where traders are likely to take partial profits on shorts or consider a long reversal.
• 0.61805: The Value Area Low (VAL) of December 31st, marking the bottom of today’s range and a critical support level. Price reaching this level could prompt bullish reversal attempts or at least temporary profit-taking by short sellers.

Bullish Levels to Watch

• 0.62257: The closing VWAP of December 30th. Price exceeding this level would indicate bullish strength and open the door to further upside.
• 0.62325: The Value Area High (VAH) of December 30th, a likely resistance zone where traders may take partial profits on longs.
• 0.626: A key resistance level that represents a potential target for bulls. Profit-takers at this level could create temporary pullbacks or consolidation.

Day Trading Outlook for 6A Futures

The Australian Dollar Futures remain in a consolidation phase, trading near key levels that could act as price magnets.

• Above 0.62257: A break above the VWAP of December 30th signals bullish momentum, with resistance at 0.62325 and 0.626. These levels are likely to attract profit-taking and increased liquidity.
• Below 0.62019: Price moving below this level would indicate bearish control, with targets at 0.61925 and 0.61805. These areas are critical support zones where reversals or temporary bounces may occur.

Practical Considerations for Traders

• For Shorts: If entering a short near the current price, monitor 0.61925 and 0.61805 for partial profit-taking opportunities. These levels are likely to see reactions from long traders or algo activity.
• For Longs: A bullish breakout above 0.62257 sets up potential moves toward 0.62325 and 0.626. Watch these levels for opportunities to take partial profits or adjust stops.

As always, structure trades with an attractive reward-to-risk ratio and monitor price action closely around these key levels. Visit ForexLive.com for other perspectives.

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