The AUDUSD daily chart has been an absolute mess as price grinds and churns above a very stubborn support level. Some traders would call this type of pattern ‘accumulation’ as lots of money exchanges hands and the market prepares to make a major reversal.
We can see an obvious containment line here stopping prices from moving any lower, everytime price has tested this level the market has reacted with bullish aggressiveness.
This session we’ve seen the market ‘test and bounce’ off this level as prices push higher off this level ones again. The daily candle could close as a counter trend bullish rejection candle and present a nice buy opportunity for those risk savvy traders looking to take the chance of catching a major reversal.
Just remember the market looks like a mess at the moment, so there is a good element of risk here – but when risk tips the scale down on one end, reward potential is lifted on the other. Let’s see how this market plays out this week.
Support Level Broken
The high risk appetite bullish trade idea we posted above didn’t work out as the weekly level was breached by bearish movement this session.
Just remember the market looks like a mess at the moment, so there is a good element of risk here
Now the support level is clearly breached, we are definitely only looking to sell this market. Waiting for re-tests of the weekly support and looking to get short via price action sell signal confirmation. I am not into ‘touch-trading’, I like to let the price action communicate the level is going to hold as a swing point.
So keep an eye out fo bearish reversal signals here.