Tuesday, November 10, 2009

AUDJPY: Support Becomes Resistance

My last post showed a profitable overnight setup based on a week long support line on the 1hr chart.

Here, I've got an example of a support becoming resistance once it has been violated.

Take a look at the following 15min chart:

See the violation around 9:00pm last night? As an aside, this was a good point to try a well protected short. Overnight we tested a longer term support line (see my previous two posts) which held.

Finally, notice that recently this previous support line held as resistance just before 6:00am. I do expect it to be violated as the longer term support held -- but obviously we'll have to wait and see.

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