Be tricky to have got into the first pullback due to Sunday market open.
As for the second pullback we can see some absorption. If volume starts to build below, and we see a pullback or fresh demand, then it could go. Its not one automatically fade until we have followed the price action.
It broke that supply (in fact an early supplier had been taken out and we can see the pullback).
Supply came in on AUDUSD (circled area), got a nice pullback and squeeze to break the previous session low and go to our LT1 and LT2 targets (127.2 and 141.4 extensions of previous sessions high & low.
18 pips. Not brilliant, but good enough.
The blue horizontal lines are major option levels on AUDUSD at 0.7750 (520 mln) and 0.7800 levels (418 mln)
The problem with trading these lower time frame liquidity levels is that in the event of a strong trend they can’t be relied upon to hold, but on this GBPUSD 5 minute chart, look how the price ‘taps back to a previous level.
Just some levels I’ve been looking at on the EURAUD chart. Really have to go down to the small time frame charts to see them:
One area has just been broken through though, as price broke through the previous session low, then went for my ‘trademark’ 127.2 and 141.4 extentions for targets 🙂
Not been looking at EURAUD for a while, though its one of the best movers and quite a transparent pair to trade, though the spread can be quite how with many brokers (IG etc)
Higher timeframe levels of interest for dealing on the USDJPY. Hourly chart
Updated in the light of the London session movement
EURUSD levels of interest today. Pink area is a potential ‘chop zone’ I’d rather stay out of.
We have Central Bank speakers today, Draghi of the ECB at 2PM and of course Fed Reserve Chairman Yellen at 3PM.
Supply and Demand zones, 5 minute GBPJPY chart