Friday, December 26, 2008

Thin Trading Resistance Test

I'm not sure how significant technical events will be with thin holiday trading. However, the AUDJPY tested the long term resistance mentioned in my previous post.

As I write, this pair has been slipping down after what appeared to be a sustained break for several hours (at least according to my chart... over such a large period of time small inaccuracies could lead to misinterpretation).

Which way will it go? Does it matter if we reject a break when trading is this thin? I'm going to guess that as time goes forward the technical importance will increase as nobody bothers to second guess the reasons for historic price movements.

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