Sunday, May 27, 2012

AUDUSD Potential Reversal

For those who manage to catch the re-entry, you would have pocketed about 40 pips or so. However, price failed to close further below, suggesting a potential reversal.

Audusd appears to be making a higher low with around the same high for the past 3 days. Clearly, it is consolidating and it retesting the resistance level.

Notice how the resistance faced by the bulls in driving price higher.

For the bears, they find it hard to drive price lower as 0.97249 and 0.97093 was once a strong support.

With these being said, expect a ranging market. If price manages to close below 0.97093, then await for a retest of the level before considering a short. If price breaks above 0.9820, await for a valid trigger before entering long (this is what i prefer). Stay sharp! Advisable to  get out of this position currently and await for the market to tell you who has won the battle.

No comments:

Post a Comment