Aussie-Skrilla Key extension and resistance level
Updated
The double top formation, which is circled on the left shoulder, is a major point of resistance and support on multiple points in the entire instrument. This point is also a 2.414 Fibonacci extension level. Also, on the 4 and 1 hour charts, there is a Deep Crab harmonic pattern, which would suggest a possible bullish rally. I will set my stop at 0.71206 since this is another strong level of former resistance. I will enter the trade upon opening, unless the market gives an aggressively bearish sentiment.
Trade active
AUDUSD bounced off the 2.414 line, just like we wanted it to! I grabbed a few pips here and there, and now have set up for the long haul. It may want to retest the 2.414, but all stops are in place. Small risk for a big reward.
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