AUDUSD double top off resistance on intraday charts

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audusd h4 double top

We’ve been waiting the AUDUSD heavily this week, anticipating a bearish mean reversion move from these over extended prices form the mean value. The market has run into a weekly resistance level and stalled there during this weeks trading.

We generally focus on the daily chart, but if you look at the 4 hour time frame you can easily spot a double top pattern at the weekly resistance, which also lines up with the big round number of 93.00.

Looking over at the daily chart, two bearish rejection candles are present, both with lower closes than their open price.

audusd daily chart

The previous rejection candle didn’t work out as a price action trade, because the high’s were broken and that’s generally where our stops are located. But a second chance opportunity has formed when the next, larger bearish rejection candle was printed last session as a result of the market re-testing and reject the key weekly level.

If the market sells off in the next few sessions, watch out for the significant level marked below to act as a swing level within the overall trend. Ill be watching for a bullish price action reversal signal to form off said support.

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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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