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AUD/USD - Continues to Offer Opportunity at Daily Resistance

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@forexbrokr
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Direct from the desk of Dane Williams, exclusive to leofinance.io


Key Takeaways:

  • AUD/USD continues to offer opportunities at daily resistance.
  • Bullish trend remains in tact, but definitely capped by resistance.
  • Bias is to trade from the short side, as long as resistance holds.

AUD/USD Technical Analysis

After breaking out of its descending triangle to the upside, AUD/USD price action followed through nicely to resistance where it has been sitting for the last week or so.

Price has been wicking into the zone and getting rejected each time, highlighted by yesterday's rejection from the exact midpoint of our daily zone.

Take a look at the updated Aussie daily chart below.

AUD/USD Daily:

While I've previously talked about trading around some short term zones on the blog, price action has been somewhat choppy and aggressive traders would have been stopped out.

Stop placement is such a frustrating part of day trading for many, but you've just got to commit to your strategy and stick to it.

If you've done the backtesting and know it works, then you shouldn't have anything to worry about, right?

In this case, aggressive traders who shorted early may have been stopped out, but with the higher time frame zone continuing to hold, the trade technically remains valid.

More conservative traders who placed their stop above the higher time frame zone would have obviously survived and still be short.

Finding the right balance here is entirely down to personal preference and the only way you're going to have the confidence to execute over and over is by backtesting yourself.

Best of probabilities to you.


Data to Watch This Week:

  • CPI q/q (AUD)
  • Trimmed Mean CPI q/q (AUD)
  • FOMC Statement (USD)
  • FOMC Press Conference (USD)
  • Advance GDP q/q (USD)

Why not leave a comment and share a chart of your own in the comments section below? All comments that add something to the discussion will be upvoted.

This daily market analysis blog is exclusive to leofinance.io.

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