Markets are still quite calm. The most important event (technically speaking) is of course the breakout of Eurodollar – although it is not very strong. GBP/USD is worth observation, it starts to consolidate near the support. Let’s start the review:

AUD/NZD:

Currency pair is still closed between 1.0915 and 1.0730 level. Now approaching resistance – the price action here will be crucial. A clear sell signal will be a opportunity to open short positions. However, breakout here is also likely. In this case we should wait for breakout confirmation (daily candle closure above the resistance) and then search for longs at the re-challenge from the top.

EUR/JPY:

Yesterday I wrote that the pair is recently in very important zone. As expected, there was a resistance test and the price has dropped. Hourly chart shows that a pin bar was an excellent opportunity to open shorts. It can be traded both ways – traditional one (sell stop below the minimum) or with lesser risk (opening the position only after 50% abolition). Observing that strong support is 450 pips lower the position carries a very favorable risk-to-return ration of 30:1! Of course you have to keep in mind that the smaller the SL is and the smaller the TF from which we took our signals is, the weaker it will be. However, in such situations it is worth to take a risk.

EUR/USD:

Finally, we saw some interesting movements on EUR/USD. Of course the most important will be the 1.383-1.389 challenge, but after a decisive closing above 1.3700 resistance attack seems to be very likely. New positions can be opened after next support re-test and PA buy signal occurrence. Keep in mind however, that the key factor here is price behavior near the resistance zone. Sell signal is played short, traditionally if the breakout will take place it is needed to wait for a re-challenge and only then enter the positions.

NZD/USD:

Currency pair is approaching the resistance at 0.84085.Yesterda’s correction was stopped by 21 EMA. It is worth to observe Kiwi and price’s behavior near the 0.8410 zone.

Free schooling cycle with well-know trader Alexander Elder – grab a link here!

Error, group does not exist! Check your syntax! (ID: 3)