AUD/USD Key Points
- AUD/USD holding higher time frame resistance.
- Retesting previous short term support as resistance on the intraday charts.
- Bull's weakness, setting us up for a potential short.
AUD/USD Technical Analysis
After falling off higher time frame resistance, AUD/USD has continued lower and last week broke through daily support:
You can see from the daily chart, that with a little help from the RBNZ, the Aussie then retested broken support as resistance.
But for all the short term bullishness, the fact that price is below higher time frame support/resistance means I'd rather be playing from the short side. Especially with the risk:reward on offer this close to resistance.
So with that in mind, lets zoom into the intraday charts:
You can see on the hourly that price has printed a nice short term area of support that if retested, would be an excellent place to short.
But the 15 minute chart shows price looking mighty weak. Look at the way that price is stepping down, instantly failing at every retest of the previous low. This could mean that the bulls are too weak to even get a retest!
Aggressive traders will use that intraday zone to manage their risk around and conservative traders will use the higher time frame resistance line.
Best of probabilities to you.
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