AUD/USD Update. Lower we go

Good afternoon traders,

Just a quick Friday afternoon update on our AUD/USD short trade that we spoke about last week.

Here’s a short extract:

AUD/USD Daily:

Click on chart to see a larger view.

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:

AUD/USD Daily:

Click on chart to see a larger view.

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.

Have a fantastic weekend and as always, best of probabilities to you!

Dane Williams – Vantage FX

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Source: Vantage FX Blog