The holidays are slowly beginning and we can see a decreasing volatility on the markets. This leads to a large, rapid movements – great example here is GBP/USD which after neutraln, strong macro data strongly moved down, to make up the entire loss after few minutes. Weak data from New Zealand brought the NZD/USD below support in the dynamic movement.
AUD/NZD:
Abovementioned data influenced also AUD/NZD. Price is approaching the resistance, where it may stop. Trend is upward, so it is worth to look for long positions in the case of correction. However, a clear price action sell signal will also allow short positioning near the resistance.
EUR/USD:
Eurodollar consolidates just below the resistance, which yesterday was quite clearly rejected. While the price is below 1.3820 the sentiment will still be downward and it seems that the 1.3700 level test should take place before any further increases.
GBP/USD:
Cable is very dynamical, which gave clear buy signal on H4. It may be played 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.
NZD/JPY:
Another cross in today’s setups review. Buy signal from Thursday was rejected and the position ended up at the SL. However, the support zone works all the time which is evidenced by the long lower wicks of candles – thus, it is worth to look for next buy signals. Trading with a gainful risk/reward ratio we can afford a series of losses sometimes, which will be later made up for the one, profitable position.
NZD/USD:
Further slippages on Kiwi – currency pair broke local support (tested three times on the H4 chart). Currently, this level should provide resistance and it is worth to look for PA sell signals in this area.
