AUDUSD – Corrective Pullback Into Mid-Term Resistance

Chris Capre 2ndskiesforex

Price Action Context

On the 31^st of December, the Aussie entered a wide long-term resistance from which a strong bearish impulsive move emerged. This bearish impulsive move erased all the ground made by the bulls the 2 weeks prior and price broke back below a mid-term S/R zone which now should act as resistance. In the last week, we’ve seen a corrective pullback towards this S/R zone and today’s solid bearish reaction to this zone is a good indication of increasing bearish order flow around this zone IMO.

Trending Analysis

Our long-term bias on the pairs is still bearish and weak pullbacks into the mid-term resistance can present potential shorting opportunities for those not short yet.

Key Support & Resistance Zones

R: 0.6920 – 0.6940
S: 0.6670 – 0.6730

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Author

Chris Capre

2ndskiesforex

Chris Capre is a professional forex trader and mentor specialized in Price Action trading, and the Ichimoku Cloud.

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