After breaking out above a downtrend resistance line (represented on the displayed chart by the upper red line), price on the AUD/USD daily chart performed a classic throwback right back to the line. After this throwback, price abruptly bounced up again, as might have been expected. This type of breakout that includes a pullback/throwback and then a continuation in the direction of the break often represents a good second-chance opportunity for breakout traders to get in on this kind of trade at a beneficial price. A strong confirmation of this breakout activity would occur if price subsequently exceeds the last high (around 0.9100) after the trendline break, with significant momentum. In this event, the obvious major resistance level to the upside resides at the long-term high of around 0.9400. If, however, this turns out to be a failed break, the upper red downtrend line should continue to serve as support where it originally acted as resistance.

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