Yesterday many trend were continued. On CAD/JPY position has recently opened – I wrote about it during Tuesday’s morning review. Before we start I want to invite you to take part in a free Price Action Webinar where you will be able to learn about Price Action Technique on Indexes and Commodities – you can find it here.
Pair is approaching a key support, which recently was expressly rejected. The price behavior will be very important here – a buy signal will give a opportunity to open longs, while the support breakthrough will indicate a deeper correction. Then, it is time to look for short positions opportunities.
We are now observing a rebound which is clearly approaching the resistance line at 1.3700. Even yesterday’s downward candle didn’t change the direction. The most important will be the price action near that resistance – so for now we recommend to refrain from opening position on EUR/USD.
Pound behaves quite well and with yen in pair took over the resistance yesterday (which should act now like support), beating additionally, the 21 EMA barrier. Now we should wait for re-test of that level from the top giving a PA signal. Then we will be able to join in the last upward momentum and open a long position.
The kiwi is clearly closed in the range between 0.8410 and 0.8080. In the nearest future the resistance re-challenge is highly possible and if the sell signal will occur once again then you can sell NZD/USD – you can put TP near the support area.
Loonie is using the local support – the currency pair rebounded from it on Friday. Traditionally, if a buy signal will occur we can open longs. However, if the zone will be overtaken by price then we should use re-test from the top. With Price Action sell signal we could match and open short positions – put TP at a key support level 1.0740.