The AUSUSD break is walking a fine line

Technical Analysis

Author: Ryan Littlestone | audusd

0.7700 has finally broken but the break is on thin ice

We watched the break up yesterday as the US dollar suffered but we haven't really pushed on, and that's left the break looking decidedly dodgy.

Yesterday, I wanted to see the 0.7720/35 area properly cleared out to give this break a chance of carrying on. It hasn't done that and so here we are with a little battle on our hands.

AUDUSD H4 chart

The battle is between the old resistance turned support at 0.7690/95, and the high up at 0.7732. If either break then were likely to see an extension of that move. If we hold inside either of the levels then we'll test the other.

There's good money to be had trading between the levels with a very tight stop, and/or then trading a confirmed break.