Looking at the EURAUD cross pair after the close of last week’s trading, where a price action event has taken place at the current ‘market top’. From the daily chart point of view, this market has been in an overall range, moves higher terminating at the range top and sell offs bouncing off the range bottom.
When the market tested the range top last weekly, price stalled and then rejected any further moves higher past the resistance containment level. The Friday candle closed as a bearish rejection candle with a lower close than it’s open, signalling lower prices.
This has been a proven level for price action signals, with the last two tests of this level also generating bearish rejection candles that matured into nice profits. EURAUD can produce big moves, so we will be watching this one on Monday, looking for retracement entries.