Good morning traders,
With Monday’s AUD/USD and yesterday’s USD/CAD setups playing out nicely, I wanted to speak about the AUD/NZD short setup that we had previously featured. A level that didn’t hold and the setup was blown out of the water by a fundamental news spike.
Take a look at the chart below in comparison to September’s blog. The zone broke to the upside pretty convincingly, but as you can now see, price is back retesting it again from the other side.
It’s not just the level that’s interesting, but it’s the price action inside it. The last daily candle that’s low touches the bottom of the marked zone is a pretty juicy indecision candle. The fact that it’s inside the support zone and the bottom touched the exact bottom gives it more stead in my opinion.
Now zoom into an intraday chart and take a look at the price action on for example the 15 minute chart such as below.
You can really see the buyers coming in at the bottom of the zone with that huge wick late in the trading session.
Let’s see if it can break and hold back above it now. Remember that for now, it’s just a daily indecision candle rather than a reversal.
Best of probabilities to you!
Dane Williams – Vantage FX
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Source: Vantage FX Blog