Last trading session was relatively uneventful, which is quite typical for Monday price action. However a Bearish Rejection Candle Signal did form on the USDCHF daily chart.
This price action signal formed during times of strength in this weak market, that’s when we like to sell into bearish conditions, ‘sell on strength’.
If price can break down below the low of the signal and trigger short trades, traders must watch out for the key support level resting below. If the current bearish momentum continues then it’s likely that this level won’t hold
The only thing we don’t like about this setup is that we would have liked to have seen a deeper retracement, we won’t be trading any breakdowns in price until the london hours kickin. Trading Asian session breakouts here would be deadly.