The AUD and NZD have been power horses this week, we’ve seen a really strong burst rally out of these majors.
Now the bulls are driving price into important technical levels on the daily chart – which I am watching for potential bearish reversal signals.
The AUDUSD is flirting with the top of this squeeze structure. We can see clearly the descending highs that make up a nice declining trend line structure.
A sell signal here would indicate the market is re-respecting this as a resistance level, and a potential move back down to the opposing trend line could be on the table.
The NZDUSD paints a similar kind of picture…
Price has exploded upwards with a mean reversion, notice the bullish reversal signal flagged at extreme prices there.
We can see the market is clearly testing a level that was very strong support in the recent past.
Watch to see if this level now holds as new resistance. If we get a fat bearish reversal signal here, that would be a nice clue that the level is holding as new resistance, and a large down move could develop off the level.
War room members keep the Battle Station tuned in here to be notified of any price action signals that do develop at this critical levels.
Best of luck on the charts.