Hey team,
After AUD/USD broke out of resistance and gave us 1:3 to the long side, broad USD strength has since seen the pair pull back.
All the way back underneath the higher time frame zone.
Just take a look on the updated Aussie daily chart below:
AUD/USD Daily:
See how price has broken back below the zone and then retested it again as resistance?
With price now below higher time frame support, my trading strategy says we only want to be trading this pair from the short side once again.
So now lets zoom into an intraday chart and take a look at the price action on the hourly:
AUD/USD Hourly:
After pushing below higher time frame support, we take the last area of short term support that when retested as resistance, can be used as an entry.
I've first marked the green hourly candle to draw the zone from and secondly marked the retest of short term support turned resistance where we shorted.
The process is always the same, with at least a 1:3 risk:reward taken.
Over and over again.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.