AUDUSD has headed up into a strong resistance on the 4 hours and also a key level on the daily chart which adds up to the strength of the level.
The double bottom launched a rally of about 150 pips with a nice risk to reward ratio, giving a chance for a small counter trend play before a possible breakout.
A short on the pair upon signs of any weakness is a very safe way to play it with stops just about a few pips above resistance, placing the target on the intermediate support which also lies on the 38.2% of the Fib Retracements giving a good 1:4 Risk-Reward ratio.
More aggressively, the pair can be shorted without any confirmation signals as the price action suggests a possible short term exhaustion in the run and also a double top. This exhaustion is a result of consistent impulse candles during the initial part of the move which is then followed by two large candles. Normally, large candles prior key role reversal levels, which follows a very consistently sized impulse candles shows an exhaustion in the move giving a short term breather for the pair before attempting a retest and a possible breakout of the role reversal level .
The double bottom launched a rally of about 150 pips with a nice risk to reward ratio, giving a chance for a small counter trend play before a possible breakout.
A short on the pair upon signs of any weakness is a very safe way to play it with stops just about a few pips above resistance, placing the target on the intermediate support which also lies on the 38.2% of the Fib Retracements giving a good 1:4 Risk-Reward ratio.
More aggressively, the pair can be shorted without any confirmation signals as the price action suggests a possible short term exhaustion in the run and also a double top. This exhaustion is a result of consistent impulse candles during the initial part of the move which is then followed by two large candles. Normally, large candles prior key role reversal levels, which follows a very consistently sized impulse candles shows an exhaustion in the move giving a short term breather for the pair before attempting a retest and a possible breakout of the role reversal level .