AUD/USD
We had expected the levels at 0.8575 and 0.8550 might act as support as they had acted previously as both resistance and support. Note how these “flipping” levels can work really well. The H4 chart below shows how the price printed a bullish engulfing candle with a bounce off the higher level of 0.8575 shown at (1). This long trade failed, but there was later on during the week another bullish engulfing candle off the level at 0.8550 marked at (2), which would be in profit now. These trades against the long-term trend do not have a high win rate, but can produce excellent reward to risk ratios..
Key Support / Resistance Levels 09 November 2014
Weekly Forecast 09 November 2014
There were no strong counter-trend movements this week, so we take no position.
Average volatility this week was less than it was last week. About one-third of the major and minor pairs fluctuated in value by more than 1%.
The big story of the week was the continuation of existing strength and weakness, most emphatically expressed in the rise of USD/JPY by a little over 2%.
Currency Price Changes & Interest Rates 09 November 2014
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