In this week’s War Room commentary we talked about this sell signal here on the AUDUSD.
Basically a strong bearish rejection candle off stubborn resistance, communicated that the market was not going to break through and most likely sell off again.
This scenario played out – but we didn’t get the retracement entry we were looking for.
Now the consolidation pattern has broken, we are waiting for ‘breakout & re-test’ type trades here for the next selling opportunity.
If we get another price action sell signal as the old consolidation support holds as new resistance, creating a new swing level, then we can use it to build a short position off.