Looking at a very straight forward, but major counter trend price action signal today, located on the AUDCHF daily chart.

Last session the price here tried to break higher above a weekly resistance level, but ultimately failed as the market denied the higher prices, and closed as a Bearish Rejection Candle.

The rejection candle has a nice thick bearish body, thanks to the candle closing way below it’s closing price – this gives the candle a strong bearish anatomy.

We’re also dealing with a weekly resistance level which has recent proven to be a strong turning point in the market here.

The bearish rejection candle is an early warning sign of a potential reversal, and if one does occur – there is a lot of down side potential before the next major support level.

A correctional retracement entry would be the best entry scenario here. We need to tighten the stop loss to give the setup a realistic risk/reward ratio.

If we can get that pull back entry, will be looking to milk this trade for everything it is worth, and run for 1:6 reward.

Best of luck on the charts.

The post AUDCHF Major Bearish Reversal Signal – Lots of Downside Potential appeared first on The Forex Guy's Price Action Trading Strategies.