Breakout -> Retracement
Good morning everyone, I hope you are all well. I have broken down AUDUSD from the weekly or monthly that I recently uploaded down to the H1 timeframe with hopes of a better understanding as to how price will go about from the support on the weekly to the high of the left shoulder of our "head and shoulder" structure on the weekly. As we can clearly see on the image above our resistance(0.65088-0.65393) was broken and price is now heading for the next resistance(0.66034-0.66168) which I have indicated with a red zone. When price gets to this red zone(0.66034-0.66168) we should expect a reversal back down to the previous resistance(0.65088-0.65393) which was broken for price to retest that old resistance(0.65088-0.65393) as new support before price can continue upwards, basic retracement principles. Trade with caution and proper risk management.
Thank you.
Thank you.
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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.