Retests
AUDCHF
This set up shows an example of retesting previous areas of resistance.
Price recently broke out of the 0.2010 area to reach a new high of 0.9240. Following this movement, price came back down to the resistance level of 0.2010 as a 'retest'. Signs that this retest was positive and price would likely continue on the up is the strong bullish rejection seen at this level on the 1hour and 2 hour charts.
Retest determine if price can hit this previous level before continuing the uptrend; which is the bullish momentum is strong enough, this is what we may expect to see. Alternatively, if the bullish momentum isn't enough to continue on the trend, price could move back down through the resistance zone back down to recent support levels (in this case, 0.91800).
AUDCHF
This set up shows an example of retesting previous areas of resistance.
Price recently broke out of the 0.2010 area to reach a new high of 0.9240. Following this movement, price came back down to the resistance level of 0.2010 as a 'retest'. Signs that this retest was positive and price would likely continue on the up is the strong bullish rejection seen at this level on the 1hour and 2 hour charts.
Retest determine if price can hit this previous level before continuing the uptrend; which is the bullish momentum is strong enough, this is what we may expect to see. Alternatively, if the bullish momentum isn't enough to continue on the trend, price could move back down through the resistance zone back down to recent support levels (in this case, 0.91800).
Note
***AUDCAD***Clearly some Friday brain fog kicking in...the idea above is meant to read AUDCAD not AUDCHF. Too many CHFs on my mind
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.