Good day traders! The chart above shows the price structure of AUD/USD when I covered this trade idea on the 25th of October. There were two long-term channel lines above price at the time which created a price zone between 0.6883 – 0.6950.
My second chart shows where price is trading at today. AUD/USD probably topped out after price found resistance at my upper blue channel line and reversed lower. Price has since dropped below a previous level where resistance turned into support at 0.6810.
There is a good chance that price will test the 0.6778 price level, which is where a center median line and lower median line from two separate pitchforks cross. A break below those lines could drive price lower towards the 0.6727 price level or even the 2nd of October low at 0.6670.
Until next time, happy and safe trading!