AUDUSD Daily Chart (25 Jan, 2016)
As you can see from the daily chart above, retest come after a market breaks two key horizontal level of support. The market now revisits the former support level after breaking it, we want to see it test that level as new resistance. The bearish shooting star which is formed at the new level of resistance is how we evaluate that test. We looking for a chance to short the pair to trade with the direction of the trend. Once the sell is trigger, we would set our target at the latest horizontal support which is around 0.6845.
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