EURAUD is back at the range top once again after a volatile range rotation – where the market sold off aggressively to the range bottom and rotated just as aggressively back to the range top.
Last session price overshot the range upper boundary and attempted to break higher. The breakout failed and collapsed back in on itself, forcing price to close below the open price for the day – creating a bearish rejection candle pattern.
If the bullish momentum has been exhausted and price breaks the low of the rejection candle, we could see the next swing down back to the range bottom take place. Be cautious though, this cross-pair has seen some crazy power moves on the daily chart. The momentum is still consider up at the momentum, but if this signal plays out, it could turn out to be quite lucrative.
