AUDUSD has been on a very aggressive uptrend the previous few weeks, but recently the market collected with a strong weekly resistance level which has remained firm and contained prices from moving higher.
Price has been stuttering up near this weekly resistance, unable to make any moves – but now we’re starting to see weakness come into the market as a lower higher is developing.
This first lower high will complete a classic head and shoulders reversal pattern, which is a big bearish structure pattern.
We were looking at this chart in the war room today, watching for 4 hour bearish signals as an ‘early bird’ warning into any potential bearish moves…
Just now I received an alert on my mobile from the MT4 Battle Station about a bearish rejection candle that has formed on the 4 hour chart.
This is a very nice signal, very aggressive bearish body, bouncing off the weekly resistance and also made a lower high.
We can see price is using this level as a swing level – old support acting as new resistance.
This could be the early warning bearish opportunity that could kick off the larger bearish pattern on the daily chart.
Good luck on the charts everyone…