Interesting situation on the markets, but it can even more interesting today. A lot of important data, indices are right below resistance and today we should see direction of future movements.
It seemed like this pair will grow but break happened to be false one and price is again below resistance. On H4 we can see Inside Bar forming, based on this we can open position. I see three scenarios right now:
- Break below and close below mother candle (green range on the chart). The we can set sell limit order on 50% retracement of signal candle, Stop Loss above it or opening with market price, according to new rules.
- Break above and close above mother candle. It will be long signal and I will set buy limit order on 50% retracement of signal candle and SL below it or opening with market price according to new rules.
- Break above, come back to mother candle range and opening short position with market price and SL above mother candle.
But signal on this pair. Price decreased perfectly to support and I hope now it will hit the resistance. On H4 chart we can see Inside Bar created and break out of it. Now we just have to open long position, especially because breaking candle is a Pin Bar. Stop Loss is about 70 pips and Take Profit is 380 pips.
If you are interested in Price Action Strategy description, you can read it here.
Loonie stays in bearish trend. Price is getting to resistance right now and if there will be any sell signal it will be worth to consider opening shorts. I have opened position since March 2nd.
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Commodities show very rare in my analysis, but it doesn’t mean I don’t watch them. Copper is in bullish trend (short term at least). We noticed Pin Bar on the support. Last gains were stopped by very strong resistance, but if another test will end with break, copper should appreciate.