Here's actually another trade quite recently made. This is on the AUDUSD as it approaches a key resistance level. Bias is towards the price reversing from it rather than breaking through.
This resistance level was tested once already. Previously it acted as a support, but again recently broke through. As it has been tested once in an extreme upper tail, it is relatively safe to assume that another test will succeed. This is partially because of the rapid ascent in price that just cannot sustain. Since this level has not been tested multiple times, this resistance zone is quite fresh.
Yes, this trade does carry a bit of risk towards the higher end. This is because the price has not yet broken through the ascending trend-line. However, it does have a pretty good risk to reward ratio. The price is nearing the resistance zone so the risk is limited to a stop out at above the resistance zone. Meanwhile, the reward is we dare say endless. This pair is naturally in a downtrend so we can actually ride this out as it sinks lower. Just be sure that the swaps are not eating away in your profits.
For live trade signals, please check Twitter: @fxsignals4pips
