The past week was marked by the strengthening of the Yen and Dollar. Also Canadian and Australian dollars were stronger then the European currencies – due to that beginning of new week draws some interesting opportunities for opening positions after corrections. So let’s start with the first part of Monday Price Action Setups. The second part will be published in afternoon so stay tuned!
The pair shot over the resistance (which is now support line). On Friday we saw a successful re-test which confirmed the bulls strength on this pair. Further testing of this level with the occurrence of a clear Price Action buy signal will give us a chance to open long positions with the first TP on resistance line around 1.0915.
Currency pair dropped below support line at 1.5595 on Friday, which created a clear negative signal in the form of a candle with large upper wick. That does not look good and in the close future the key support level at 1.5000 may be tested. That’s the place where we should look for opportunities to open long positions consistent with the long-term upward trend.
In the last week Yen was really strong. In the meantime Euro was weak which has resulted in a dynamic breakthrough of support line (now resistance) and a successful re-test from the bottom (also the 21-day EMA). That gives the opportunity to open shorts which I will present on the next chart (H1 TF).
During the testing of abovementioned level and the EMA the 9-candle consolidation was built up, where 8 candles were inside bars of long upward mother candle. Such setup can be played in several ways – we may put sell stop below the mother-candle minimum and SL few pips above. The position would open up and now in the moment would give more than 300 pips in the black.
Currency pair is testing support level. On Friday it managed to bounce from the zone, but now the price is approaching again and can give us a buy signal. However, if it overtakes this level, then you can look for shorts after the re-test from the bottom 1.8750.
The weakening New Zealand dollar and the appreciation of the Canadian dollar led the pair to the support line. We should look here for buy signals, because it is very likely that both currencies have undergone only slight corrections and the NZD in the current week will be strengthening again, while CAD will be strongly weakening. However, if the scenario won’t get real and the price will take over the key support then we will need to look for short positions in the case of support re-test.
For now it’s all! Look for the second part of today’s Price Action Setups in the afternoon. I wish you all great trading beginning of the week – of course with PA! 🙂