Direct from the desk of Dane Williams.
Hey team,
We spoke last week about AUD/USD breaking out of daily resistance and therefore possibly looking to trade the pair from the long side this week.
Click the link in the paragraph above for the full trade idea, but here's the Aussie daily chart at the time, quoted below:
AUD/USD Daily:
Let's walk through the price action so far, applying my simple forex support/resistance trading strategy to the pair.
With price breaking through the daily zone, it now puts us above higher time frame support.
And with that, come only looking to trade the Aussie from the long side.
Now zoom into an hourly chart and lets take a look at the intraday price action:
AUD/USD Hourly:
Take the first area of short term resistance, that when retested as support, can be used as an entry with clearly defined risk.
In this case, the the left hand arrow marks the short term resistance zone (just the first red candle) and then the right hand arrow marks the retest.
As you can see, price never dropped through the zone, avoiding stop losses placed at the other side.
Just another of the same 1:3 setups that I talk about over and over and ov....
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.