Good afternoon traders,
If you’ve been following the Vantage FX daily forex news blog, then you’ll know that after failing to break through higher time frame resistance, we were looking to play AUD/USD, something like this:
“It could be a nice area to build a short position if you believe that the higher time frame psychological level has held and that the bears are now fully in control of the market.”
Well since we published the Aussie charts on that post linked above, price has continued lower and come down through the next obvious support/resistance zone that you can see on the current daily chart:
What’s caught my attention now however, is the way that price has gone through the zone and then shown weakness as it retests.
Your levels are there to manage your risk around and the zone is certainly an area of interest, but I’m interested in hearing when do you hit the short button? Let us know on the @VantageFX Twitter page!
Best of probabilities to you.
Dane Williams – Vantage FX
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Source: Vantage FX Blog