AUD/USD Key Points

• Aussie capped by higher time frame resistance.
• Intraday, short term support turned resistance holds again.
• Australian employment data to possibly spur new lows?

AUD/USD Technical Analysis

Morning team,

Well then. Here we go again.

With AUD/USD returning to resistance, we happily shorted it once again. That same AUD/USD resistance zone from Monday that just keeps holding and playing out time and time again.

Here's the key excerpt from yesterday's analysis with the AUD/USD hourly chart at the time:

Yep, that's the original short term support turned resistance zone that we were looking to sell into on Monday morning. Just when the AUD/USD bears looked like they were regaining control of the market.

I spoke about how important your levels are for managing risk, even in a market that is being whipsawed around by headlines and random data releases. No matter what happens, price is always king and support/resistance zones are merely a representation of price.

While momentum driven moves may seem irrational and random on the surface, in reality they rarely are. They still respect major zones and levels, just like what we've seen in AUD/USD all week.

Take a look at the updated AUD/USD hourly chart below:

So once again just going over things:

• With price below higher time frame support/resistance, our bias was to play from the short side.
• From here, we identified the intraday short term support turned resistance zone in grey and shorted as price retested the zone.
• While price wicked through the zone a few times, the higher time frame level was never tested and price never closed above the intraday zone.

Price has returned to swing lows and found support again. The resilience of the Aussie bulls is quite inspirational really. They certainly aren't giving this one up without a fight.

We've got employment data at the bottom of the hour so that could all change. Let's see.

Best of probabilities to you,

Dane.

Upcoming Economic Releases

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