Focusing on the AUDCHF today which has dropped a large outside candle reversal signal on the daily chart for us.
We were watching this chart in the war room last session, waiting for re-test of this weekly level after price had broken back below it – watching for bearish opportunities as it holds as resistance.
We can see that scenario did play out, and we’ve got the reversal signal we were waiting for at this key technical level. You will also notice it is a weekly turning point also, which adds value to the bearish trade idea here.
Now we’re hoping to get a pull-back entry, but the market has been moving fairly strong lately, not offering good retracement entries on the last batch of price action signals that were printed.
If we can get a retracement entry here, great.
It’s important to note we have Fed speeches and interest rate decisions this session, which will inject volatility into the market – Retracement prices could be hit then.
Fed speeches are pretty much the highest volatility events we have, more potent than NFP – which also we have this week as well. Not only that, we’ve also got an election coming up – so we’ve got some jittery, knee-jerk kind of markets right now.
There is also a similar setup on AUDJPY. Best of luck on the charts.