Just a quick Friday afternoon update on our AUD/USD short trade that we spoke about last week.
Here’s a short extract:
Take a look at the levels that I’ve put the markers on. That’s pretty obvious previous short term support turned resistance.
The qualifier for this trade is the fact that price is trending down and that the higher time frame resistance level around the 80c psychological level was rejected so heavily.
Fast forward to the present and take a look at how price reacted to the level:
When you have a higher time frame resistance level hold, it then becomes all about selling previous short term support that has the potential to turn to resistance just like this.