We recently discussed the possibility of a bullish breakout on the AUDCHF from an Inside Day singal, which is shown in the previous post below. However we did warn to watch out for them early Asian price break traps which is exactly what happened with this setup. Price make a break high too early in the Asian session and trapped unsuspecting traders into bad long positions. This chart is now looking bearish after all attempts from price to move higher have failed. If price breaks support we could see a larger move down. It’s best to wait for a bearish signal under the support level for confirmation. If you would like to learn how to avoid getting caught up in Asian false break trap trades, see the Price Action Protocol.
Previous Post
Taking at look at the markets for the start of this trading week, I’ve drawn my focus to the AUDCHF Daily chart which has a nice Inside Day Signal. The Inside Day is sitting right on a key Daily swing point level, suggesting price churned away as money exchanged hands positioning in as price entered this important level on the chart. What I’ll be looking for is a break of the high of the Inside Day to signal the trend is back in motion. Of course we are always cautious at DnB with early Asian session trade triggers which the Price Action Protocol goes into more detail with. Bring on the new trading week.