AUD/USD Back Above Daily Support/Resistance... Or is it?

forexbrokr (67)in #forex • 5 years ago

Direct from the desk of Dane Williams,
This is not your average forex broker blog.

AUD/USD Technical Analysis

Afternoon team,

While AUD/USD has been below higher time frame resistance, we've been trading the pair from the short side.

But following Friday's Non-Farm Payrolls release, the Aussie has now jumped back above our higher time frame line in the sand.

If you're already a reader of this blog, then you'll no doubt have the following line drawn on your daily chart, but if you need a refresher, then here it is.

AUD/USD Daily:

As you can see, the line we've had on our charts, is drawn from the June 2019 low.

But because the level is on a higher time frame chart, no matter where we choose to draw this line, we should never expect the line to be a brick wall that will stop momentum exactly to the pip.

With that in mind, now take a look at the same AUD/USD daily chart, with another line added in from the May 2019 swing lows.

AUD/USD Daily 2:

That changes things entirely, doesn't it!

No longer are we looking at price being above higher time frame support/resistance, but now we're right in the midst of a resistance zone.

Something I always try to teach new traders, is that support/resistance, especially on a higher time frame chart, should be viewed more as a zone than a hard level.

Support/resistance is a subjective thing. It only matters because other traders are watching it, but other traders might be watching something slightly different to you.

Its an art, not a science.

Stay safe out there!

Want to read how I plan to attack these higher time frame, market narratives and actually zoom in to trade them?

Then click here to join my Inner Circle.

Best of probabilities to you,

Dane.