The AUDUSD has formed a Pin Bar reversal on the daily chart. This Pin Bar is formed at a key support level and is well defined as well as sticking away from all other price.
Price has been trading lower lately with all momentum to the downside. In the recent few days we can see price has been quite choppy and bouncing up and down.
Entering this Pin Bar is counter-trend trading. As well as being counter trend, there is a close near term resistance area just above the high of the pin. See the chart below.
If price breaks higher this resistance is the first level that would need to break for any sustained moves higher. If price fails and moves lower the next support comes in around 1.0060.
AUDUSD DAILY CHART 5TH MAR 2013
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