Last session we were graced with the volatility the FED brought to the markets and we seen the USD strengthen again. As a result we seen the major currencies weaken like the GBP and the AUD. The AUDUSD producing a large bearish rejection candle with a heavy close, suggesting lower prices are to come – especially after the attempted to breakout of the consolidation upper containment line failed.
Looking also at the AUDJPY today where a bearish rejection candle has formed as the market responses bearishly to a resistance level. Traders who are getting short off this signal should remember this is against the overall bullish pressure of this market and should watch the mean value area to see if it holds as dynamic support. If the market holds at the mean and starts printing bullish price action, this could be an early warning flag to exit early. Invertedly, if the mean value fails to hold, we could see the AUDJPY sell off down into the next major support level and produce good returns.
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