AUDCHF Rejects important resistance level – expecting further weakness

November 10, 2013 in Forex Analysis

audchf rejecting higher prices at resistance

The AUDCHF market has rejected moves higher into a dominant resistance level. The importance of this resistance level is easily visible on the daily timeframe. The Thursday daily candle closed as an aggressive bearish rejection candle with quite a large upper tail.

The large upper tail suggests price tried to break through the key level and created a breakout trap for the bulls. Price collapsed back below the resistance level closing lower than it’s open price.

We can anticipate further bearish momentum off this setup. A retracement entry has already been triggered which I mess, so I guess we will have to wait for the next price action sell opportunity to manifest with the developing bearish momentum.

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