Forex Price Action Setup – AUDUSD Failure Point Just Below Aug 9th

*I’ve been gone for 5 weeks on vacation but am now back writing from command central so expect articles daily from Sun-Thur from here on out along with bonus articles on Friday.

AUDUSD
Since the 20th of June, the Aussie has been in an upward sloping channel which has been rather orderly making a touch on the top and then venturing to the bottom….until recently.  Lately, it has been hanging around the upper band of this channel and putting pressure on the topside (along with the sellers in the market).  SEE CHART BELOW.

price action channel failure point 2ndskiesforex.com aug 9th

Generally, when you see this in a range or channel, it means the sellers are being squeezed out of the market as they are unable to make any progress to the downside while the bulls apply continuous pressure on them squeezing them out of the market.  This ability for price to remain towards the upper boundary of the channel will no doubt  bring other players in who are also noticing this price action.  Thus, I am favoring more of a breakout to the upside.

However, I do see a sticky level below which is a failure point for me, meaning should the bulls fail to hold this level, then the bears should be able to make some headway to the downside. This failure point at 1.0533 is a nice role reversal level which was resistance back in the end of July and support on Aug. 7th. Should this level fail to hold the price action up, I would suspect this could be a good place for bears to get in as prices should decline to about 1.0445 which was also a role reversal level and a key support area behind this last leg, so plays for both bulls and bears here.

failure point role reversal level price action 2ndskiesforex.com aug 9th

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Tasos

    Welcome back Chris. We’ve been missing your articles!

    • Thanks Tasos,

      Good to be back in the saddle again!

      Kind Regards,
      Chris

  • fxboy

    good to have u back.
    i have been missing ur articles too.

    • Thanks Amigo,

      Good to be back!

      Kind Regards,
      Chris

  • DV4

    I will triple that comment Chris great to see you back, coincidentally I am short AUDUSD from 1.0595 and AUDNZD right now and the support level you note above is just below my target