Aussie-Skrilla Key extension and resistance level

15 May 2016

The double top formation, which is circled on the left shoulder, is a major point of resistance and support on multiple points in the entire instrument. This point is also a 2.414 Fibonacci extension level. Also, on the 4 and 1 hour charts, there is a Deep Crab harmonic pattern, which would suggest a possible bullish rally. I will set my stop at 0.71206 since this is another strong level of former resistance. I will enter the trade upon opening, unless the market gives an aggressively bearish sentiment.

16 May 2016

İşlem aktif

AUDUSD bounced off the 2.414 line, just like we wanted it to! I grabbed a few pips here and there, and now have set up for the long haul. It may want to retest the 2.414, but all stops are in place. Small risk for a big reward.