After a short break, welcome back to the Vantage FX News Centre.
Back in May when price was testing weekly trend line support amid weak fundamentals, we spoke about a possible AUD/USD long setup against popular consensus.
With price back retesting the same weekly trend line now 6 months later, the current AUD/USD setup that is unfolding is just about an exact carbon copy of last time!
The weekly Aussie chart highlights the higher time frame, trend line support level in play again. Even though the level has been chopped through, if you zoom into a lower time frame chart and look at how price reacted going through it each time, you can see that the level is highly significant.
Now that the trend line has held, it has essentially been reactivated as support.
We now zoom into an intraday chart to look for an actionable trading setup following the higher time frame support level having held. Confirmation of the level holding for me is usually a bounce and retest of previous short term resistance now holding as support. This intraday level gives the ability to use a tight stop and target some excellent risk:reward depending on how aggressive you want to be with your trading.
Do you see opportunity in trading AUD/USD? Trade forex with the lowest commission ECN forex broker, Vantage FX.
Dane Williams – @VantageFX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.