I want to invite you to read the second part of the Price Action Setups review for upcoming week. The first part where are I was describing pairs like AUDNZD, EURAUD, EURJPY, GBPAUD, NZDCAD can be found here. Let’s start!
AUD/USD:
Aussie successfully tested the resistance as you can see in the H4 chart below. But for now, thing that happen on the currency pair can be considered as consolidation. With clear PA sell signals near the resistance level we can open shorts. But with higher positions it will be better to wait for a breakout from this horizontal movement.
EUR/CAD:
The currency par is in the key location. Support and 21-day EMA should stop the declines giving a clear buy signal consistent with the current trend. However, if at the week beginning price will drop below we will need to look for opportunities to open shorts.
EUR/USD:
After resistance level false breakthrough (January 24) Eurodollar fell and broke the key support in the weekend. This may mean a more decisive down movements in the near future. Testing the 1.3510 level with sell signals occurrence will be a good opportunity to open short positions in accordance with the recent momentum.
GBP/JPY:
Speaking about British pound to Japanese yen we also have seen support line breakthrough – but here it speaks far more for the defense of this level that at the Eurodollar. At the beginning of the week we should look for clear buy signals because breakthrough may prove to be false. Further downward movement however, will significantly increase the probability of a large correction for this pair. Then you should look for sell signals during the growth adjustments.
NZD/USD:
Kiwi is moving as we expected after January 14, when there was a clear sell signal – after false breaking above the resistance line and the downward pin bar reaching a strong support. A buy signal at this point would a good opportunity to open long positions aimed at 0.8400.
That’s all for today. Look for another PA Setups review tomorrow before noon (CET time)!
