Whats up traders, I hope you are all having a good start to your trading week.
Here we have AUD/USD on the 4H chart.
Price has recently been rallying up to the resistance zone between 0.7670 and 0.7700. Price is currently sitting in the resistance zone with bullish momentum. Will it manage to break out the resistance zone highs in this move?
At this present moment, there is 2 primary outcomes I have in mind for the AUD/USD trade. Price will either break the resistance zone and setup for a potential rally, or correct, and have a later move.
The likely trading scenarios are:
- Price breaks horizontal resistance zone 0.7700 and rallies to the upside. We can either seek entry aggressively on the resistance zone breakout, or we can wait for a price correction so it can retest the previous horizontal resistance as a new horizontal support.
- Price fails to rally out of resistance zone, and has a short term correction before the breakout. If this happens I will be watching for a bounce in the consolidation zone (The price zone just below the current horizontal resistance) before seeking another buy set up.
I am expecting the breakout of the horizontal resistance to occur, and I will be waiting for the retest at the horizontal support level before the next buy set up. But if this doesn't work out, I will be using my alternative scenario as seen above.
I will be keeping a sharp eye on AUD/USD next week.
I will be updating my Bitcoin post if this idea achieves enough likes.
Here we have AUD/USD on the 4H chart.
Price has recently been rallying up to the resistance zone between 0.7670 and 0.7700. Price is currently sitting in the resistance zone with bullish momentum. Will it manage to break out the resistance zone highs in this move?
At this present moment, there is 2 primary outcomes I have in mind for the AUD/USD trade. Price will either break the resistance zone and setup for a potential rally, or correct, and have a later move.
The likely trading scenarios are:
- Price breaks horizontal resistance zone 0.7700 and rallies to the upside. We can either seek entry aggressively on the resistance zone breakout, or we can wait for a price correction so it can retest the previous horizontal resistance as a new horizontal support.
- Price fails to rally out of resistance zone, and has a short term correction before the breakout. If this happens I will be watching for a bounce in the consolidation zone (The price zone just below the current horizontal resistance) before seeking another buy set up.
I am expecting the breakout of the horizontal resistance to occur, and I will be waiting for the retest at the horizontal support level before the next buy set up. But if this doesn't work out, I will be using my alternative scenario as seen above.
I will be keeping a sharp eye on AUD/USD next week.
I will be updating my Bitcoin post if this idea achieves enough likes.
Trade closed: target reached:
Target reached as predicted. Well done to everyone who has been following me FOREX analysis. We've also been highly successfully in the FOREX private channel.
