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Text Book Perfect Bearish Swing Trade On AUDNZD

(click to enlarge)AUDNZD perfect swing tradeClick to enlarge

The AUDNZD 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 AUDNZD 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.