Today, the setup on the Forex Market will represented by the AUDCHF. This is not a major pair but the current price action is very technical and I think that this is a great trading opportunity. AUDCHF has a legitimate sell signal, which was triggered yesterday.
In the long-term, the price is in a deep downtrend. September was a month of a bullish correction, which was shaped like a flag (black lines). The flag ended in line with expectations – with a bearish breakout. In the meantime, the price managed to create another bearish pattern – head and shoulders (red neckline), which was an additional negative factor. Yesterday, AUDCHF, managed to break the neckline, which in theory gives us a sell signal.
As long as we stay below the red line, the sentiment is negative. The first target for the sellers are the lows from September and chances that we will get there are very high.