FX:AUDUSD Australian Dollar/U.S. Dollar
The formation, which is circled on the left shoulder, is a major point of resistance and support on multiple points in the entire instrument. This point is also a 2.414 level. Also, on the 4 and 1 hour charts, there is a , which would suggest a possible rally. I will set my stop at 0.71206 since this is another strong level of former resistance. I will enter the trade upon opening, unless the market gives an aggressively sentiment.
Trade active: $AUDUSD bounced off the 2.414 line, just like we wanted it to! I grabbed a few pips here and there, and now have set up for the long haul. It may want to retest the 2.414, but all stops are in place. Small risk for a big reward.