As we wrote about in our forex market commentary yesterday, the AUDUSD formed both a pin bar and dueling swords pattern, initially rejecting off of parity. The markets gapped higher on the open from the Spanish Bank bailout of €100B, which has already seen its luster come off. Is it now to the point that €100B injection lasts only a few hours? If so, things are really bad.
Regardless, the dueling swords pattern played out on both sides, completing the initial pattern in gapping higher, then forming a pin bar setup at the parity level again. It also formed an intraday pin bar reversal setup which many of our price action traders got in on as it was discussed …... Keep reading