AUDUSD swing look for short, day trade long with care
Analysis for swing traders: Look for short continuation. Need to follow closely for price reaction as pair is already now inside major shadow. Way to know if current shadow offers resistance is see how pair closes end of week i.e. above or below current shadow.
Analysis for day traders: Rightfully should proceed with long in line with current white week candle but pair is already inside major shadow so entry right now equals buying at resistance.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
1. Attach a horizontal line at each turning point in the past 12 months on weekly chart.
2. These lines leave a shadow.
3. Shadows are not evenly dispersed but tend to be clustered.
4. When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
5. Look for dark shadow to offer next turning point.
6. Price will move quickly through empty spaces or bright areas.
Analysis for day traders: Rightfully should proceed with long in line with current white week candle but pair is already inside major shadow so entry right now equals buying at resistance.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
1. Attach a horizontal line at each turning point in the past 12 months on weekly chart.
2. These lines leave a shadow.
3. Shadows are not evenly dispersed but tend to be clustered.
4. When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
5. Look for dark shadow to offer next turning point.
6. Price will move quickly through empty spaces or bright areas.
Trade closed: target reached:
AUDUSD is now at the lowest shadow zone between 7455 and 7433. It makes sense to take profit. In one single week AUDUSD fell 2-week range.
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