AUDNZD is testing historical monthly lows after rejection candle

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audnzd hits target

A ‘text book’ perfect swing trade occurred on the audnzd daily chart at the close of last weeks trading. A old support level acting as new resistance, lining up nicely with the mean value created the perfect hot spot for shorting. The rejection candle setup seen prices weaken quite aggressively into a critical monthly support level.

This is a good area for sellers to consider liquidating their short positions as the market is now testing monthly lows. These prices have been respected as the market floor for the last decade. Right now we’re watching for strong bullish price action signals to manifest themselves here to confirm buying pressure and confirmation of a potential long setup.

Be cautious of bearish traps if the market does dive below the level, it could very well be classic price trap.

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The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.

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