To start off this week's trading most of the pairs experienced light price movements. The more active moves were the Australian & New Zealand dollar.
On the Australian dollar, the market opened up much lower than Friday's close 'gapping down'. As soon as the market started ticking this week, the bulls started to reject the bearish move into the mean value and the candle closed much higher.
If we didn't have the interruption of the weekend, this candle would have closed as the typical 'pin bar' formation. The mean value has held as dynamic support on the AUDUSD, all the recent sell offs into the trend mean have been rejected by the bulls.
The buoyancy of the market above the mean is a good sign of trend stability and traders could use the gap rejection as a signal to get long. Just watch out for the overhead swing high, look for any strong bearish signals which may hinder bullish positions.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies