AUD/USD breached the major resistance line, went 50 pips beyond it, and retreated. What can we learn from this false break? The Aussie began the week very close to the major resistance line of 0.7267. This was on thin trading, when European traders were still celebrating Easter. In the middle of the New York session, at about 16:00 GMT, the Aussie breached this line, but did it slowly, very slowly. It took very small steps. During the Asian session, between Monday and Tuesday, it peaked at 0.7324. This is 57 pips above the resistance line, reached on January 6th. This wasn’t enough. After reaching a 3 months high, and doing it with a significant margin, the Aussie retreated. In the early hours of Tuesday, it went back, down to 0.7232, below the resistance line. It then continued to shake, around the line, ignoring it. During the next hours, it fell as low as 0.7150, and then rose to 0.7223. Where will it go next? Quite hard to tell. What can we learn from this case? 50 pips break isn’t enough This was just a first test, and the Aussie will break the line again, this time flying high in the sky. Thin trading caused this break – Don’t trade at these times! Another explanation? I must say that I’m confused, especially after praising the AUD/USD as the most predictable currency pair. I’d love to hear a reasonable explanation… Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Daily Outlook – April 16th 2009 Yohay Elam 14 years AUD/USD breached the major resistance line, went 50 pips beyond it, and retreated. What can we learn from this false break? The Aussie began the week very close to the major resistance line of 0.7267. This was on thin trading, when European traders were still celebrating Easter. In the middle of the New York session, at about 16:00 GMT, the Aussie breached this line, but did it slowly, very slowly. It took very small steps. During the Asian session, between Monday and Tuesday, it peaked at 0.7324. This is 57 pips above the resistance line, reached on January 6th.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
