Direct from the desk of Dane Williams,
market analysis exclusive to leofinance.io
Key Takeaways:
- AUD/USD daily resistance remains persistent.
- Bullish trend flatlining as price struggles to break daily resistance zone.
- The market offering plenty of opportunity to short off the zone.
AUD/USD Technical Analysis
Damn Aussie, that AUD/USD daily resistance zone we've been talking about, continues to hold like a boss.
Bounce after bounce (as you'll see once we get to the hourly price action below), resistance continues to hold and give savvy day traders an opportunity to make some money shorting.
But as always, we view the higher time frame zones as being the most significant and the bears persistence in holding the 78c zone is still key to the Aussie's price action.
Just take a look at the higher time frame chart below.
AUD/USD Daily:
Depending on how you want to count the wicks when it comes to rejections off the zone, we have at least 9 touches here.
We're not just talking about little nothing moves either.
Zoom in and take a look at the intraday price action on the Aussie hourly chart below and you'll soon see the day trading opportunity that this pair has offered us over the past couple of weeks.
AUD/USD Hourly:
Just with the naked eye, I can see multiple opportunities to get short using my simple forex support and resistance trading strategy.
As price is capped by higher time frame resistance, we only want to be trading the pair from the short side.
So each time that zone holds, we find the last area of short term support that when retested as resistance, can be used as an entry.
The process is always the same.
Only the names and numbers of the charts differ.
Best of probabilities to you.
Data to Watch This Week:
- RBA Rate Statement (AUD)
Who remembers trading when central bank rate statements such as what we're getting from the RBA this week, actually mattered?
We're at zero and we're going to remain at zero for the foreseeable future.
Just printing money and racking up debt for future generations to deal with after we're dead.
Just keep kicking that can down the road, Philip.
It'll be someone else's problem soon...
Why not leave a comment and share a chart of your own in the comments section below? All comments that add something to the discussion will be upvoted.
This daily market analysis blog is exclusive to leofinance.io.