We are currently SHORT on this pair catching the possible final wave down into the uptrend where we are looking to close this trade, take profits and then look for a good BUY setup to confirm this analysis.
AUDUSD: Stuck Between 2 SR Zones But Now Retesting Key Support.
For a almost a year between April, 2016 till March, 2017, AUDUSD kept hitting and hitting a former STRONG until finally breaking through a few months back in August, 2017. After it broke that resistance and exploded upwards from there for a month to the end of August, it has since then retreated back down and is now retesting that key former resistance.
This could be that classic resistance turned support setup. Should that former STRONG resistance now turned support hold, we are going to see an EXPLOSIVE move up from here! Will it happen right away? It could but just as likely, it may take some time and prices may sit around this zone for a bit. But regardless, as long as the support holds, it does not matter how long it takes. Eventually, we're gonna see AUDUSD head MUCH higher! Maybe EXPLOSIVELY!
AUDUSD Weekly Chart
That STRONG S/R zone I mentioned is shown here in the yellow box. You can see that this zone has some great significance in the past years having impact on prices both as . Particularly between April, 2016 and August of this year. Prices tried to break through numerous times but couldn't until towards the end of August.
As you can see here, prices are now back into that zone and retesting it as support now. In addition, AUDUSD is also approaching a retest of a minor uptrend as well. This makes for a pretty strong case that prices are about to reverse and head on up.