Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
For this Friday’s edition of DecaPip Daily I would like to look at the AUSUSD and how we can trade this increasingly difficult currency pair.
We are at a critical point for the AUSUSD as we sit on the cusp of a continued bear cycle or an attempt to make some meaningful retrace higher and follow the other currencies with the counter move against the US Dollar.
Technically we now need to see the crucial 7288 area hold and offer some type of offense the bulls may want to step in here and it will be interesting if they can take this higher.From my perspective the 7256-66 is the line in sand that needs to holds firm and we may well get a hint as to the appetite of market participants around these levels.
Below is a shorter time frame chart looking at the areas of interest.
For me the best way to trade this is to attempt a buy position in the 7255-65 region and keep my stop reasonable tight and with this trade I hope to see the bulls step in slowly and quietly and take us above the 7300 and next week put in a lower low on the weekly and start the ascent higher.
Alternatively we sit tight here and wait for next week and hope to see a lower low or a break out from this range and make a more informed decision.
My Decapip Weekly chart below published the previous weekend highlights the potential path available to traders if the bulls want to take this higher from the current congestion zone.With this in mind the risk reward is there for bulls they just really need to see lower lows and this extreme support to hold firm.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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