From an investor to a scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
AUDJPY as a result of declines lasting from December 2014, it reached support level at 74.00, coinciding with 61.8% of the Fibonacci correction from earlier gains, where demand reaction occurred in June.
As a result of the growth lasting since June 2016, pair already in November broke the resistance of the bearish channel and reached the local support zone. It is also worth noting that all this upward movement is also within a channel. These gains reached the level of 90.00, where in September there was a supply reaction.
Looking at the daily chart, we notice that even though the later drops did not reach even the lower limit of the channel, we are seeing growth again.
Explanation why these drops reached only level of 86.70, we find looking at the 4-hour chart. It turns out that this level is the September low.
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As a result of the growth lasting since Tuesday, the pair reached the local resistance at 87.85, converging precisely with 50% of the Fibonacci correction of earlier declines. Although there was a supply reaction in the morning, which resulted in a bearish pin-bar candle, the gains continue.
If this trend continues, we could expect to test again 88.40 or even 89.00.
