Good morning Traders!
The Japanese Yen has stage a comeback against many of it’s trading partners in the past couple of weeks, and with the Reserve Bank of Australia interest rate decision due on the 7th of February, we may see some volatility around the AUD crosses.
The market is currently trading around it’s very strong level of Support and Resistance around the 90.5 area. On the weekly chart we have a confirmed downtrend, and price action that have pulled back into it’s moving averages.
As the market was pulling back on the higher timeframes, the lower timeframes – the daily has changed direction. Looking at the Daily chart, we can see the importance of this level, and the numerous touches from above and below that price action had around this level.
As the higher timeframes are currently contradicting in their direction, I’ll be drilling down into lower timeframes to get more detailed information about the activity around this area. For a bullish direction, I would like to see an attempt by the sellers to break through this level, followed by a fast and strong buying momentum rejecting the break lower, and closing above the level.
Similarly, for a bearish direction, I would like to see an attempt by the buyers to reject this
level, followed by a fast and strong selling momentum pushing the price lower, and
closing decisively below this level.