This is a study of AUD/USD price action from a novice forex trader's perspective just shy of 2 years live fx trading
The aim of this study is for me to get better at the following:
identifying "key" support and resistance levels
identify good trade setups based off of my analysis of these support and resistance levels
better understand the currency pair's price action in order to make better analysis and trade decisions
learn from any mistakes I make in my analysis, trade setups, and biases on price action
AUD/USD Daily
Price has made a strong bearish moves down to a support area at ~0.71688 level
Last time this price played a support role was back in June 2016
With the strong move down, and a historical support level, I like the idea of a short after price pulls back up from the support level. I think that price will try and test 0.71688 again
Trade setup would only be valid if the daily candle closes in resistance area showing an "indecision candle"
If price continues moving up I would wait for price to find resistance at a another level
Komen
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Yesterday's daily candle was pretty bullish
* Still looking for a short opportunity on the 12hr and 8hr charts * Using Daily chart as my base for analyzing price action and trends * The pair looks like it may have a little bullish push up and my setup would be to wait for price to find resistance at a previous support level like ~0.73291 or even higher at ~0.74984 levels * If price continues through with strong bullish momentum my setup would be invalid
Sorry did not know how to link the image, now I know I can do it in the comments section and not in the "update idea" section
- Yesterday's candle was pretty bullish I'm looking for price action to stay a little bullish and move on up
- My setup would rely on price finding resistance at a previous support/resistance level with the close of an indecision candle
- I'm looking for a setup on the 12hr / 8hr charts