One of the pairs that have been trading in between consistent support and resistance levels in the last weeks is the AUDUSD:
The AUDUSD just triggered a bearish market condition, so as long as the Aussie keeps trading below 0.8968 I will be looking for short trade opportunities. And of course, all long opportunities will be ignored.
Yesterday we wrote an article about the possible bullish market condition of the AUDUSD, and it was bullish, but it only last for a few hours. The AUDUSD came back to the neutral territory and stayed there for a while.
Things have changed today though, earlier this morning we saw the AUDUSD break the short term support level which puts the Australian dollar in a bearish market condition.
I don’t like it when we see any pair changing from bullish to bearish and vice versa, but if we take a look at the daily chart its clear that the market was rejected from the resistance level (we had a false breakout last Wednesday).
Also take in consideration the AUDUSD is trading below every important level in the short term charts, so everything is in line now.
Anyway, here is my trading plan:
As long as the market keeps trading below 0.9259 I will be looking for short opportunities. The next LT support level is at 0.9993