As the chart below shows, Aussie:Yen has been drifting in a trading range over the past week.
I've also shown the daily chart below. The fast stochastics in this time frame are still trending down. The nearest major support is alos some way below the current range. Using a dual time frame strategy, the daily chart would at this stage confirm the following set ups for traders working off an hourly chart
- Sell on a rally from current levels followed by a rejection of the resistance at the top of the trading range or
- Sell on a breach of the trading range support. Many traders would wait for price to clear the support by a certain amount (e.g 10 pips) before entering
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