Yesterday session was quite boring – it was not a surprise – British and American markets were celebrating their holidays. Today, it may cause higher volatility and interesting moves. Let’s start today’s review of potential PA setups:
AUD/JPY:
Cross broke the night resistance, below which price consolidated since Friday. Now, this level should act as support. The last candle may be event considered as buy signal, because it almost reached this very level and formed pin-bar candle which gave buy signal.
AUD/USD:
Aussie also started to move, breaking the pin-bar candle maximum from Wednesday. Traders which use the safest trading techniques and waiting for the breakout of signal candle’s maximum, may open their positions. Just for remembering – you can act in three different ways:
-Buying after breaking the maximum, stop loss below the minimum,
– Buying after breaking the maximum, stop loss below the 50% of candle’s abolition (better risk/reward ratio than in the first case – where the likelihood of losses is greater),
– Buy limit on 50% of candle’s abolition, stop loss below the minimum. Better risk/reward ratio than in the first case and safer SL than in the second one. There is still a risk of lack of correction – in that scenario we will be out of position and just observing the developing trend.
EUR/USD:
After closure which might suggest huge falls, Eurodollar was able to find itself above the key support. What is interesting, first time since July 2013 short net leverage funds are higher than long positioning. It may indicate a bigger downtrend. We should look for short positions, e.g. near the local support at 1.3730.
GBP/CHF:
Currency pair still consolidates below the key resistance. Daily candles momentum is clearly downward, so we should consider short positions after 50% of Friday’s candle abolition – which looks like pin-bar. Such position may be risky but its r/r is 6-8:1.
NZD/JPY:
Cross broken dynamically the support in last week. Since then, we are in ongoing consolidation below this level and sell signal in case of re-challenge of this level may be a good occasion to open short position – according to ongoing downtrend.
