Sunday, May 27, 2012

AUDCHF Bear Trap!

Last week, this pair did did something really interesting.

Notice how price manage to close below week 1 and week 2 lows, a significant support level where price bounce off 4 times in the past.

Yet last week, price went to retest the level and eventually broke through with a strong bullish candle.

Clearly, the breakout of week 1 and 2 lows have been a fakeout; a bear trap for bears shorting late.
Look to buy when price retraces to the lows of week 1 and 2.

Don't get caught in this bear trap!

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