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Aussie Forms Pin Bar + False Break – Reversal? May 29th
AUDUSD – After Breaking Key Level, Forms Counter Trend Pin Bar
The Aussie broke the key level in .9600 yesterday, dropping over 73 pips in the process, but then formed a counter-trend pin bar just above .9500. It then followed up with some impulsive buying mid-London session today gaining 80 pips in 45 minutes before running into resistance at .9656. This breaking back above .9600 has formed a false break of sorts, so the question has to be asked – is a reversal in the making?
NOTE: My shorts on the break of .9600 got stopped out for BE, but you just move on to the next trade as I don’t sit around for days waiting for trades when there are plenty of high quality signals each day. Some savvy traders in the price action course who had smaller targets made some solid profits, so hats off to them.
Back to the Aussie – the pair is still inside a declining wedge, so if this keeps it suppressed, then bears may form another attack to close below .9600. However, a break above .9670 and .9700 puts .9815 into perspective while likely communicating a short term bottom is in place. Thus bulls can look to buy just above .9600, while bears can look to sell at .9700 or .9815 on corrective rallies. Bulls will target the aforementioned key levels while bears will gun for .9527 and .9384 which is a multi-year support level.
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