Three great setups for Forex Bears

Yesterday and today, EURAUD is climbing higher but just to test the super important horizontal resistance. EURAUD met a combination of three crucial elements. First one is the upper line of the bearish flag formation. The second one is the horizontal resistance, which previously, for many weeks was a support and the third one is the mid-term down trendline. According to the price action rules, the price should continue to go down.

Next one is the AUDJPY, where on the daily chart, the price broke the crucial horizontal support. The beginning of the week brings us a small reversal but in our opinion, it is just a typical pull-back and a previous support is being tested as a closest resistance. As long as we stay below the grey area, the sentiment is negative.

GBPCHF is having a very strong bearish setup on the weekly and daily chart. Here, the price is coming back to the main downtrend after being locked inside of the flag pattern. We already broke the lower line of the flag and the horizontal support on the 1.287. The sentiment is definitely negative.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

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