Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
The Audusd has been the ideal candidate for buy and hold since having broken out of its range and pulled back to find support at .9700. The strength of the uptrend was proven when it encountered the weekly resistance line at 1.0390, (see chart below) which it promptly breached and retested before surging further north.
During this time, a bullish channel formed on the 4-hour timeframe. Currently, a look at the 4hr chart will show the previous channel support line breached and is now being retested at 1.0740. I have drawn in projections of two different scenarios, should this resistance hold and the up trendline get tested at the 1.0600 level. Please note that the up trendline on this 4-hour chart is the same as that on the daily. I am particularly wary of shorting the pair because of the fact that it recently bounced off weekly support, and this could potentially send it higher.
The brown lines explain the first scenario (a) I am watching for a test of the trendline and a reversal bar to go long with a first target at the current highs. In scenario (b), illustrated by pink lines, if the trendline gets breached, I’ll be looking for a retest to short. Here, the weekly breakout area at 1.0430 would be a major target, and I would need to see a further breach of that support could open the way for a test of 1.0200s.
Thanks for reading. Your own views are always welcome too. Safe trading!! 🙂
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