After the big drop on the AUD this week, we’ve been watch for retracements to find opportunities to position in with any further continued bearish momentum.
The bearish move basically did push all the technicals on the daily chart into bearish territory: price closing on the negative side of the mean, and a close below an important weekly level after trying to break higher.
Now that price has retraced back up a bit, it is re-testing the weekly resistance level – we can already see some rejection of further higher prices as price reacts with the level.
When you drop down to the 4 hour chart…
There is a nice reversal candle sitting right under our resistance level from the daily chart.
This could be the ‘early warning sign’ of a pending bigger sell off.
If price does hold under this resistance level, and breaks the lows of the outside candle on the h4 chart – it could be worth a shot a going short.
If it’s going to drop here, the move could be decent!
SOKHA TUY
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