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Aussie Sell Signal From Engulfing Bar Plays Out | Oct 24th
AUDUSD – Pulls Back Into Resistance Zone, Then Sells Off
Yesterday in our daily market commentary, we commented on how the bearish engulfing bar likely took out the stops of some medium/longer term bulls in the market. We suggested looking for a pullback into the 9670 – 9703 resistance zone to sell, targeting 9615 and 9536.
Today the market pulled to a high of .96698 (.2 pips shy of it) and then sold off over 140+ pips in a matter of hours. Savvy price action traders profited from this, so hopefully you did the same as the first target alone would have granted you an almost 3R trade.
For now, the pair found an intraday low sub 9570 and then bounced back above 9615/20 so this may be a false break. At worst case, TP1 was hit so partial profits taken with stops moved to BE (breakeven).
If 9630 holds, then we may get follow-through, but if it folds, then a re-attack on the 9670/9700 should be up next. Bears can look to sell into this resistance zone, or wait for yesterdays highs around 9750. Bulls meanwhile would be best served waiting for a pullback towards 9530 before getting long again.
Make sure to check out our latest article about Reactions to Stress in Trading
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