We have not traded AUDUSD since the last decline Dynamic Traders profited from. Recently price bounced from the support provided by the previous pivot low and the expected resistance should be assumed at the figure 9.
The September 2014 decline (high to low) from the 50 moving average resistance was about 8%. That is a big move down in a short period but prior to that there was a period of consolidation that warranted a strong breakout and trend.
Dynamic Traders are trend traders and so are looking for a breakout to initiate a new trend. We will not be trading a long position at present and will wait for price action to make a move outside of the range levels before considering a trade. At the moment price is closer to support so a breakdown below the support level might offer a shorting opportunity.
Weekly AUDUSD chart below courtesy of eSignal Advanced GET.
Good trend trading…