The last day of the month and also the last Price Action Setups review for this week. Let’s start the Friday’s technical analysis using PA technique:
Once again the price is challenging the strong support – this time a little deeper. A clear buy signal from the PA can be used to open long positions. However, it seems more likely that the current level will be broken soon.
Yesterday, currency pair broke the support which now should act as resistance zone. It is worth to lok for Price Action sell signal within the level re-challenge from the bottom. Sentiment changed to downward one – which is consistent with the long-term trend.
EUR/USD ceased to respect the 1.3700 level. Yesterday’s strong growth shows clearly, that there is a “desire” to challenge 1.38. The whole situation is now quite unclear, so for the moment just do not open any positions.
Finally, there was a long-awaited resistance test and what will happen know is going to be crucial for the action on Kiwi in the nearest future. A clear sill signal will mean a return to wide consolidation and a fall to the support. Break and successful re-challenge from the top will mean upward trend and approaching area of 0.8540.