AUDUSD - 40 Pipper pre-breakout.

FX:AUDUSD   Australian Dollar/U.S. Dollar
AUDUSD             has headed up into a strong resistance on the 4 hours and also a key level on the daily chart which adds up to the strength of the level.
The double bottom launched a rally of about 150 pips with a nice risk to reward ratio, giving a chance for a small counter trend play before a possible breakout.

A short on the pair upon signs of any weakness is a very safe way to play it with stops just about a few pips above resistance, placing the target on the intermediate support which also lies on the 38.2% of the Fib Retracements giving a good 1:4 Risk-Reward ratio.

More aggressively, the pair can be shorted without any confirmation signals as the price action suggests a possible short term exhaustion in the run and also a double top . This exhaustion is a result of consistent impulse candles during the initial part of the move which is then followed by two large candles. Normally, large candles prior key role reversal levels, which follows a very consistently sized impulse candles shows an exhaustion in the move giving a short term breather for the pair before attempting a retest and a possible breakout of the role reversal level .
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out