The Australian Dollar daily.

Good afternoon Dynamic Traders,

As mentioned yesterday the possible quick short could have given about 60 pips to previous resistance which then became support, and price promptly reversed back up.

If you now go to the daily chart below, you will see that action yesterday gave us a spinning top candle which to me appears to be in no mans land and therefore could be the start of a possible breather as price has come down slightly today.

On further analysis there is a good cluster north with the figure and various fibonacci extensions and so the present pulback could possibly be just a flag on the lower timeframes, but we shall have to wait and see as there is good divergence present on the MACD.

As things stand I am waiting to see if the cluster is reached before taking action unless more conluences build now for the short trade.

As always please do your own analysis.

Charts courtesy of TradeStation.

Have fun with your trading.

Clayton Farnworth.