Easter holidays time is over – I hope you enjoyed this few days of pause and have a lot of energy to enter the markets again. In today’s Price Action Setups review we will take a closer look mainly at crosses – AUD/NZD, EUR/CAD, GBPCHF and one major – Cable.  As it could be expected, holidays on the most worlds exchanges resulted in less liquidity and consolidation in the markets.

However, we can observe currency pairs that are approaching important levels and even signals allowing to open positions. Before we get started I wanted to encourage you to participate in the Comparic’s League of Traders (for polish speaking only).

AUD/NZD:

Cross is approaching the key resistance which since December 2013 is a serious price barrier. This time it may also happen, so every clear PA sell signal will give the opportunity to go south. But we must remember that there are positions against the trend.

EUR/CAD;

Another cross for today. Last Thursday, on the EUR/CAD daily chart the pin-bar candle occurred. It may be considered as a sell signal, especially it is very close to the resistance zone. Yesterday it was possible to open position on the 50% of its abolition in accordance with the principles of playing such signals:

-Selling after breaking minimum, stop loss above the maximum,

– Selling after breaking minimum, stop loss above the 50% of candle’s abolition (better risk/reward ratio than in the first case – where the likelihood of losses is greater),

– 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. There is still a risk of lack of correction – in that scenario we will be out of position and just observing the developing trend.

GBP/CHF

British pound to Swiss francs is near very important level recently. During February and March 2014 that very level stopped the price 7 times in a row on the daily chart! Recent momentum is clearly upward, so you have to be wary of any short positions.

GBP/USD:

The only one currency pair with USD in today’s review. On Thursday, similar to EUR/CAD, Cable gave a sell signal. Yesterday it was possible to open short positions on 50% of the pin-bar candle’s abolition. There is ongoing uptrend, but the support test will give more than four times higher income than the initial stop loss. Therefore, it was worthy to position south.

 

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