Price on the daily chart of the AUDNZD has moved lower after price formed a Bearish Engulfing Bar (BEEB) on the 8hr price action chart. Price on the daily chart had been caught in a tight range for the previous few months with price unable to make a clean move either higher or lower, but last week price broke the range low and made a solid move lower to close out of the range. Once price had broken the range the clear way for price action traders to look to trade was to make short trades.
Price retraced and moved back into the old support area of the range area which held as a new price flip resistance area and it was here that price formed an 8hr BEEB. Not only was this 8hr BEEB trading from a key daily area, but the 8hr BEEB was also trading inline with the recent strong down trend. Well done to Forex School Online member Aserafino who posted up this setup live in the Members Price Action Setups Forum. As the 8hr chart shows below; once price broke the low of the 8hr BEEB and confirmed the entry, price was able to then gain momentum and move into the near term lows which are now as I write this attempting to act as support.
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AUDNZD Daily Chart
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