in today’s day trading analysis I would like to show you a nice-looking Resistance that has just formed on AUD/JPY .
On Monday and Tuesday, there was a downtrend. When there is a trend I am always interested in how volumes were distributed there. What I look for are significant areas (= clusters) that are inside the trend.
Those Clusters represent places where big trading institutions were active and where they were adding to their trading positions.
When the price makes it back (pullback) into this Cluster area, then those Sellers will want to defend this zone. Why? Because they placed a lot of their Shorts there. This zone is important for them!
This is what will make this area (starting at 83.49) a strong day trading Resistance.
I hope you guys liked my analysis! Let me know what you think in the comments below!