The AUDUSD tried to make a break for higher prices during this Asian session, but these higher prices couldn’t be maintained about this resistance as the breakout turned into a fakeout, and imploded. The breakout trap occurred at a stubborn resistance level which has been holding price since December last year.
Asia fakeouts can be a great tip off of what to expect in the upcoming busier trading hours of London and New York. Due to the bullish breakout trap and the strong resistance level, this market is now looking geared up for lower prices.
Just by reading simple plain charts like this, you can let the price action communicate to you where it’s most likely to go. Trading doesn’t have to be over complicated like most people make it.