How Scalpers Can Use Chart Analysis - Part 1 | Vantage FX

Vantage FX (www.vantagefx.co.uk) look at how we can use technical analysis to improve scalping.

Scalping Week

Today we are looking at a 1-hourly AUD/USD chart from 13 September onwards, and we can see a massive rally on 18 September on the back of the Fed meeting. What is particularly important when it comes to scalping around economic numbers is ranking for potential upset, surprise and impact. With top tier data such as central bank decisions and US employment data, it is not worth scalping as the risks are too high, but this week most of the data will be second tier.

Looking at the chart we can see that the AUD/USD drifted back down to 0.94 on Friday, gapping lower on Sunday night so that we are back down to where we were before the Fed meeting. Today the moving averages have started picking up, which indicates that we could be preparing to push up through the interim high of 94.60.

Watch out for German IFO numbers tomorrow morning, and US consumer confidence in the afternoon.