AUDCHF: Technical Perspective

We saw a great setup last week in AUDCHF which was one of our textbook RSI with Order Flow trades.  Lets take a quick look at the setup and then have a look at what we have in our sights for the pair next.

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So in the chart above we can see that we made a triple top formation at a key resistance level. At the time that we completed the triple top we noted strong bearish divergence on the RSI indicator, signalling that there was a high likelihood of a reversal from this level. So we drop down to the H1 chart to see if we get an Order Flow Trader signal confirming this bias.

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We can see that we did in fact get a great sell signal right up against the resistance level, allowing us to get short and catch a great 100 pip move to the downside which stalled and allowed us to exit at short-term support.

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So what next?

Well we have since broken through the key resistance level in the pair and are moving in a nice upward channel. If price retraces from here and retests the broken resistance which is now key support, we could see a great buying opportunity, confirmed by OFT, allowing us to target the major resistance above at the mid .77s year-to-date high which could setup a nice Double Top selling opportunity if confirmed with RSI divergence and lower-timeframe OFT sell signal.

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Check out the full video discussing the RSI With Order Flow Trader method

 

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