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.Get the 5 most predictable currency pairs