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AUD/USD Forms Strong Reversal Bar At Key Level

BySecond Skies
AuthorChris Capre
Published 03/22/2012, 02:52 AM
Updated 05/14/2017, 06:45 AM

I wrote in my facebook page earlier how I was watching for price action triggers going into the London close as the Aussie approached a key support level at 1.0423.  Price has since formed a psuedo-outside bar which is more of a piercing pattern since it did not eclipse the prior bars highs.  Am going to keep watching for a possible bottoming here and potential trigger – either a pin bar off the key level or an engulfing bar, either on the 4hr or 1hr time frame.  Should this level fail, then I will watch for a breakout pullback of the key level to look for shorts.
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EURUSD – Pin Bar Rejection off Key Level
The Euro lost ground today as it formed a pin bar setup off the same key level it did two weeks ago (1.3284).  Price has since sold off about 80+pips since then and found short term support at the 4hr 20ema and swing points at 1.3175.  Should price break below this, we will expect further selling to challenge 1.3100 shortly after.  If price pulls back to the 1.3284 level, we will watch for price action triggers – either looking to sell a pin bar setup, or watch for a breakout retest play to the long side.
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Market Commentary:
Spanish 10Y spreads jumped their most since the first day of the year, Italian yields broke back above 5% hampering the EURO’s gains. That plus technical selling after it failed to push through to new highs and breached stop-loss orders as it fell. 

Continued comments about a cooling housing market in china have dampened prospects for Aussie gains.

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