Flags are really an important technical chart pattern. They indicate a readjustment in price formation between market participants. I am eyeing an uptrend continuation haven had two flags consecutively broken. Flag breakouts form an essential part in my analytical judgment.
Last week we had a positive retail sales data (for those that knows the impact of this economic data) for the Aussie, which i mentioned on my previous post (on this pair) did send price up after the devastating bush fires did put a huge pressure on price.
Contradictory to this uptrend opinion, is a resistance ahead of us at .6930 which could potentially become an obstacle should price refuses to break out of this region and instead give us a complete head & shoulders pattern. A break of this resistance is what I am looking for to go long. If you are a patient trader and not execute everytime, you could potentially improve your trading skill. I thought I'd share this if it does help our understanding. Comments and opinions are highly welcome.
Last week we had a positive retail sales data (for those that knows the impact of this economic data) for the Aussie, which i mentioned on my previous post (on this pair) did send price up after the devastating bush fires did put a huge pressure on price.
Contradictory to this uptrend opinion, is a resistance ahead of us at .6930 which could potentially become an obstacle should price refuses to break out of this region and instead give us a complete head & shoulders pattern. A break of this resistance is what I am looking for to go long. If you are a patient trader and not execute everytime, you could potentially improve your trading skill. I thought I'd share this if it does help our understanding. Comments and opinions are highly welcome.