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.
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.
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.
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.