So the election happened, and the outcome was the unexpected. The market first tanked, fearful of the unpredictable nature of Donald Trump, but then quickly rallied back, and US stocks actually closing positive.
That was a big money transfer, a lot of people would have lost money there, and a lot would have filled their pockets. Me – I stayed flat and got nothing 😛 better to be safe than sorry.
Anyway, the event left huge footprints across most markets, and I think we are going to need to see the market settle down before any good technical setups do start popping up again.
The AUDCHF caught my attention, I received a Battle Station alert for AUDCHF – so I checked out the chart.
This weekly resistance level here is still holding back the market from moving higher, and we are getting clear rejection of the area every time the market tries to push higher into it.
Yesterdays rejection left us with a classic pin bar reversal candlestick, which is a sign of bearish strength.
If this setup plays out, we could see price accelerate lower. Due to the large range, I am going to try see if we can get a pullback entry, but it’s Friday and the market is already starting to bleed lower.
Let’s see how it unfolds, also looking for an inside candle break lower for EURCAD which was discussed in the war room today.
Best of luck on the charts today.
Steve Epperson
I feel safer somehow trading the AUD and NZD pairs. When I’m ready to stick my toe in the water again, I will try it out. Of course Dale, you are always right, sometimes. I bet this setup makes a lot of war room traders a lot of money. Best of luck.
Tshegofatso
Your articles have kept me on the ground. Sometimes emotions can get in the way of thinking. Looking at how inside day candle work and now to check the rejection pull back is nnw to me but I am interested to learn and apply.