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.
Audusd is currently trading just above a significant support level on the weekly timeframe ( refer to chart below). This support at .9849 results from a previous resistance point which was breached after repeated attempts to do so. The impressive bullish bar which ripped through, and closed beyond parity was however, completely engulfed by the following bearish one. This gives the impression that the pair might finally be ready to set up a retracement. The level that I am inclined to consider for eventual short targets is .9350/.9400, as labeled on the chart below.
The daily chart has what appears to be a head and left shoulder formation. The main up trendline was breached. The consequential bounce which came at the weekly support at .9700s could provide the momentum to push it towards the .9954 fibonacci retracement level, which would be just about equal to the left shoulder formation. This does not mean that this level will necessarily get tested; it is just worth watching for a bearish confirmation setup, if it were to stretch that far. Current resistance (.9880s) have been holding over the last 6 hours, so I will also be paying close attention to this area for a short setup.
Thanks a lot for reading, and I’d also love to hear your points of view. Happy trading! 🙂
Gbpjpy retesting weekly resistance: http://winnersedgetrading.com/gbpjpy-technical-analysis-trading-channels/
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