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AUD/NZD: A Bearish Swing Trade

ByGraham Blackmore
Published 03/10/2014, 05:20 AM
Updated 07/09/2023, 06:32 AM
AUD/NZD
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<span class=AUD/NZD Bearish Swing Trade " title="AUD/NZD Bearish Swing Trade " height="786" width="988">

The AUD/NZD has been getting a lot attention of US price action traders the last few months dropping some really nice clear cut signals in the monster downtrend which developed. Recently the market has bounced of a strong long term monthly support level, dropped a large bearish rejection candle and is now heading back down looking to retest those important monthly lows.

On friday after the NFP release, the AUD/NZD rejected a move higher into an old support level which responded as new resistance, a dictionary definition of a swing level pretty much. The market close right on the lows of Friday's trading, leaving no lower wick what so ever, a very bearish indicator. This is such a key level for a bearish signal to form, multiple non-correlated variable are lining up to support a short position.

The swing level, the mean value, the fact the market closed lower than it's open price and the high of the rejection candle made a lower high. There isn't really any more boxes to tick here and we will probably see lower prices develop next week with a possible retest of the monthly lows.

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