The most important day in last weeks – of course in terms of macro data. ECB will publish their interest rate changes and after that Mario Draghi will take part in a press conference. After that, USA publishes Initial Jobless Claims which is really important indicator of labor market condition. Before such important data markets are strongly capped, but it is possible to find few interesting setups:
AUD/NZD:
Currency pair approached the highest levels since 2013 – dynamic uptrend still ongoing, so it is worth to look for long positions. Great chance to open them will be a decrease near May 29th highs. This level was a resistance earlier, now it will act as a good support. Of course PA buy signal will be confirmation that it was a good level to choose. Look for concrete setup on D1, H4 or H1 chart.
EUR/JPY:
Currency pair tested resistance yesterday and gave sell signal (H4 chart). Pin-bar candle was rather weak (white body, small lower wick) should be abolished in 50% and after that we may consider short positioning. As we can see the setup was completed, so it was possible to enter the market. Just for remembering – there are three ways to open transactions after pin-bar candle:
-Sell after breaking minimum, stop loss above the maximum,
– Sell after breaking minimum, stop loss above 50% of the candle’s abolition (better risk/reward ratio than in the first case – where the probability of loss was higher),
– Sell limit on 50% of candle’s abolition, stop loss above the maximum. Better risk/reward ratio than in the first case and safer SL than in the second one. However, we are risking that there will not be any correction and we will be out of the position.
GBP/JPY:
Also pound to yen approached really important resistance and now is falling. There was not a clear sell signal to open safe positions. It is worth to observe the price action in the nearest future – near this very level. Currency pair is in a wide consolidation, so playing “from border to border” may give nice results.
GBP/USD:
Cable is approaching a key support and it may be a great opportunity to open long positions – which follow long term uptrend. In the nearest session we need to observe price action in the vicinity of this zone.
