AUD/USD Is Simply SMASHING All Zones of Resistance

In this analysis I will walk you through the major areas from a technical point of view that you should be focusing on when trading AUD/USD.

The trend is insane at the moment on AUD/USD. For a really long time we've seen nothing but an unbelievable surge in the price. It seems simple looking back at the chart, but trading with trends is actually really difficult.

The problem is that you want to buy low and sell high. But if an asset is upwards trending, it is extremely difficult to buy low. In fact, you are almost always buying too high.

I am not a big fan of buying after a bunch of green candles, with one exception: resistance breakout. That's why in this analysis I suggest a long position even though the price is already relatively high.

Another point of view here to look at it is that since the resistance is broken, the price is now trading near a newly found support. Through the concepts of S/R flip (www.100-eyes.com/edu...pport-and-resistance) we can learn that old resistance can become new support.

When the price is near a support, the price is low. When the price is near a resistance, the price is high. That's why we can still enter here even though the price is relatively upwards.

For an exit strategy, we can take a look at the older zones of resistance as in the shorter time frames we cannot see any other point of reference. I used the zone of December '18 here for logical exit.

Also, you can decide to go for another technique where you continuously increase your stop loss and try to ride the trend for as long as possible.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!