Can AUD/USD Repeat its V Shape Bounce off Support?

January 4, 2017

With AUD/USD testing support again to start 2017, the pair has seen buying continuing into today.

With the Aussie having tested this support zone back in May, we got a nice V shaped bounce, showing just how significant this level is. Remember, the more violent and instant the rejection from a level is, the more significant it is.

AUD/USD Daily:
170104_audusd_daily
Click on chart to see a larger view.

On the other hand, the USDX surged higher today, pushing through resistance with the one marked H1 candle.

But as you can see, was rejected immediately, proving just how significant this USDX resistance level is.

USDX Hourly:
170104_usdx_hourly
Click on chart to see a larger view.

Just like yesterday’s USD/JPY setup, using these two charts in conjunction can be highly advantageous for a forex trader. Make sure you’re keeping them both on your MT4 watchlist.

Do you see opportunity trading AUD/USD? Open a forex account with the best Australian forex broker, Vantage FX and start using the USDX in your trading.

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.

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