The AUDUSD pin bar setup I had discussed in yesterday's weekly forex commentary came off, pretty much selling from the market open throughout the day, losing about 85pips in the process. Accompanying this signal was a combo pin bar/engulfing bar on the 4hr time frame which was a rejection rejection off the key 1.0613 level and yearly highs.
Overall, I feel this sell-off is healthy as the USD was pummeled last week, needing a pullback before resuming the uptrend. I'll look to take pullbacks around 1.0400 to rejoin the uptrend for an eventual retest on 1.0600 and possible break targeting 1.0800. Bears can look to sell around the 1.0612 highs on a weak corrective pullback.
(click to enlarge)Click to enlarge
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