The biggest yesterday event – from the technical point of view – was the support break by the EUR/USD and euro weakening. However, markets are still quite sluggish recently. Let’s start with the review – four currency pairs for today:
Price is on a key support. Breaking it will mean an attack on minimums and then we will look for PA sell signals at 1.0728 re-challenge from the bottom. For now however, this level is not broke and we will have to look for growth sentiment. Buy signals can be used to open longs.
For last two days I was talking about possibility of selling the Euro to Yen. Setup was completed yesterday and now the positions is in the black.
Strong support break at 1.3700 and closure of the daily candle change the sentiment on Eurodollar to downward. It was such a clear movement that there was any buy signals, which could lead to losses. Now, in the 1.3700 area we should sell after the PA signal.
Price once again approached the support zone, executing the limit order set at 50% pin bar abolition from last Friday. Currently, you can also look sell signals. When they occur, you can move the SL over the new maximum (smaller than the previous one) and limit risk. All the time you have to remember, that this is trend-opposite transaction and conservative traders should not even consider that signal.