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Back on February 26th, I wrote about the AUDUSD.
I stated that “AUDUSD is a buy above 0.7240, but not before”.
That comment was based on the trend line that extends from the December 2018 high which is also descending channel resistance.
I wrote that post when the pair was reaching for the 0.7240 area in late February and early March.
Of course, AUDUSD never got there.
But the premise of my February 26th comment is alive and well.
In other words, the price at which AUDUSD breaks out isn’t important.
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What matters here is whether buyers can clear channel resistance on a daily closing basis.
Remember that I use New-York-close Forex charts to trade price action.
You can go here to get instant access to the same charts I use.
At the moment, that appears to be a likely scenario.
You’ll notice where AUDUSD tested this channel resistance earlier in the week.
Wednesday’s session tagged the level, and Thursday’s session sold off from it to the tune of 50 pips.
That retest and selloff help validate our level.
We know the market is paying attention to it. So if AUDUSD can clear 0.7170 today, we could have a buying opportunity on our hands early next week.
As for key resistance on the way up, keep a close eye on the 0.7330 area.
A close above that would expose 0.7470 followed by 0.7660.
But again, AUDUSD needs to close today above channel resistance at 0.7170. Without that there is no buying opportunity next week.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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