At the beginning I wanted to recommend you Price Action on Indices and Commodities webinar – you can watch it for free here. Now, speaking about markets – no major decision and moves yesterday. The only interesting thing was Yen and Canadian dollar weakening. OK, let’s start:
AUD/JPY:
In yesterday’s review I was also talking about this currency pair. A clear rebound after support re-challenging. There was a possibility to open long positions in the morning already. If you still did not open them look for next occasion to do it around 50% abolition of yesterday’s candle. Of course it is not known whether it will occur, but waiting for breaking the maximum carries too small profit-to-risk ratio.
AUD/USD:
Aussie also bounced from the local support coinciding with 21 EMA. Current correction is approaching 50% of yesterday’s candle – it can be regarded as pin bar. That gives an opportunity to open longs with a small stop.
EUR/CAD:
Para is approaching the resistance. A clear PA sell signal may be used to open short positions – however, the trend is upward and only strong signal can give opportunities to play trade against it. The most probable scenario: resistance breakout – then its re-challenge with PA buy signal will be an opportunity to enter the market and open new longs.
EUR/JPY:
Yesterday’s candle slightly changes my attitude to that pair. Clean pin bar with a long wick rejecting 21 and 8 EMA. As long as 141.00 won’t be permanently punctured forget about going long – but it seems more and more possible. Of course, clear sell signals near the resistance zone still can be played (due to downward momentum).
EUR/USD:
Eurodollar defended its support- you can see candle’s to long lower shadows. Clear evidence of demand. However, no clear buy signal (not at H1, H4 nor D1). The trend is upward, support confirmed, but still lack of a signal. Finally, if it will occur, you can start opening long positions – just remember about strong resistance above 1.38.
GBP/USD:
Cable successfully challenged the first resistance and it seems that it should approach the surrounding of 1.6600 level. Only there you will be able to look for long positions. What is more, this exact level coincides with the 38,2% abolition of recent increases. For now, just observe and enter long positions – due to clear and strong trend.
