The EURAUD cross pair has been churning sideways for some time now, and has been printing meaningless, confusing price action. The last few daily candles have printed some price action that suggests the market is ready to move lower from here. We’re seeing lots of upper wicks on the daily candles as price reacts with this key containment line, and we’re getting a lot of bearish closes on these candles. The last two candles have been in the form of bearish pin bar, which have had a lower close compared to their open price. The lows of today’s bearish rejection candle have already been breached, if price re-breaks the lows during the London session we could see a significant bearish breakout of this consolidation.
Following up on the EURAUD trade set-up that was posted earlier last week…
The price action communicated to us very well that the bears were building up momentum by constantly rejecting an important resistance level on the daily time frame. The closing prices were getting lower on each candle giving the situation more of a bearish attitude. We were able to jump in after the market produced two large bearish pin bar signals off the critical resistance level.
Some War Room traders who missed the first set of signals got a second chance opportunity to get in on the downward movement when a bearish breakout trap & reverse trade triggered a couple of days later.
The market has now broken blow an important support level and pushing into fresh lows. Now the market is moving again we can actively look for more sell signals. We’re waiting to ‘sell on signs of strength’ here, ie after counter trend corrections.
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