Today a bearish Rejection signal has formed on the AUDUSD daily chart, a nice long upper wick and a strong bearish close tell us that higher prices were not favored by the market last session and the recent bullish price movement could be at an end. The area that the market rejected was the stronger 20 EMA dynamic resistance which has been a consistent swing high point in this downtrend.
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There was a strong counter trend signal that formed off the weekly support level, this was discussed in the war room and was deemed not an ideal trade, trading with the trend is much more powerful and if price does move down past the signal candle low, traders need to watch price action around this support line if it’s tested again.
If the support line breaks we could see a significant downward move and the strong bearish trend continue.
&nsbp;
There was a strong counter trend signal that formed off the weekly support level, this was discussed in the war room and was deemed not an ideal trade, trading with the trend is much more powerful and if price does move down past the signal candle low, traders need to watch price action around this support line if it’s tested again.
If the support line breaks we could see a significant downward move and the strong bearish trend continue.