AUDUSD once again reached this week resistance area located within 0.7723. There yesterday was formed a bearish high momentum candle which can be considered as a bearish engulf.

This setup usually indicates further declines, and that is what we can expect in this case.


You can also look for potential entry into a short position at a lower interval chart, H1 for example. As you can see in the H1 chart below we are now faced with a gentle rebound from yesterday slippages. Correction has already created an higher high. Breaking the sequence can thus open the way for further falls. Potential target will be uptrend line, drawn from this year’s lows.

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