The story of AUDJPY
We have major support line A on the background. On the 27/Jan it was broken down. Note the volume [1] during the breakdown (green circle). It represented the effort of bears to beat buyers. Bear got the victory. Plot the line of resistance on this level [2].
So what’s the story?
3] Panic volume activity
4] Demand surge after panic selling was absorbed (by professionals who buy the lows)
5] The first attempt to move above the blue resistance.
6] Minor low. Approximately 50% between [3] and [5]
7] The second attempt
8] No Supply
9] Demand bars
10] The third attempt
So what?
Firstly, use the resistance line (I call it RFSB) to mark the levels where buyers should meet the troubles.
Secondly, the bulls are too persistent. Note a sequence of higher lows.
I expect the blue line will be broken out shortly.
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