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+150 Pips Trading AUD/USD: Trade Walkthrough

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@forexbrokr
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Direct from the desk of Dane Williams.


After AUD/USD completed a textbook V-shaped recovery, we highlighted that price had hit a higher time frame resistance zone on the daily.

Here's a refresher from last week's blog, quoted below.

AUD/USD Daily:

At least we might be able to get a nice counter-trend short off this resistance zone?

Well with price looking like holding on the daily, we zoomed into an intraday chart to search for an area to manage our risk around.

In this case as we're under higher time frame support, we're looking only to short. So an intraday level of short term support to be retested as resistance.

Take a look at the hourly chart and you'll see what I mean.

AUD/USD Hourly:

Higher time frame resistance holds with that big spike rejection, then the first area of short term support is retested as resistance perfectly for an entry.

Manage your risk around the zone and there was at least an easy 1:3 risk:reward in that trade.

With equities looking like they're about to roll over again, the Aussie would most likely get dragged down with them, so it could also be worth holding into this one.

Best of probabilities to you,

Dane.


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