We’ve been waiting the AUDUSD heavily this week, anticipating a bearish mean reversion move from these over extended prices form the mean value. The market has run into a weekly resistance level and stalled there during this weeks trading.
We generally focus on the daily chart, but if you look at the 4 hour time frame you can easily spot a double top pattern at the weekly resistance, which also lines up with the big round number of 93.00.
Looking over at the daily chart, two bearish rejection candles are present, both with lower closes than their open price.
The previous rejection candle didn’t work out as a price action trade, because the high’s were broken and that’s generally where our stops are located. But a second chance opportunity has formed when the next, larger bearish rejection candle was printed last session as a result of the market re-testing and reject the key weekly level.
If the market sells off in the next few sessions, watch out for the significant level marked below to act as a swing level within the overall trend. Ill be watching for a bullish price action reversal signal to form off said support.