This is an interesting chart setup that will get War Room Traders excited. The AUDNZD daily chart clearly demonstrates an asian session rejection. Usually we lookout for failed asia session breakouts as a sign of whats to come in the upcoming London and NY hours – I wouldn’t call this a failed breakout as it hardly pierced the previous candle high, but it still does show rejection of an intraday rally.
We’re in a solid downtrend right now, the mean value is angled nicely downward towards that 4-5 O’Clock angle and the market is weakening in a nice gradual fashion.
We’ve also got an Inside day that formed last session as the market grinded within the previous candle range. I was hoping for a signal to form after a deeper correction but I don’t think we’re going to get it.
If the failed asian rally weakness follows through this session and breaks the Inside Day low, we could see the next bearish push down to the next critical support level.
Good Luck on the Charts