There are lack of events in the market nowadays that may kindle the imagination of investors. Although it is still quite interesting – yen starts to strenghten after information, that Bank of Japan did not change its policy. I invite you to review today’s potential price action setups:
AUD/JPY:
Yesterday I showed how to play long on this pair, luckily it was not realized and the price fell, changing the sentiment. This shows that playing pending orders even when we choose wrong direction it is impossible to lose. Currently, it is worth to look for sell signal after re-test of local support, now resistance.
EUR/USD:
Eurodollar – without any doubts – is currently in an upward trend, but from Friday we see a correction. Yesterday it stopped on the support around 1.3833 – it is a high from October 2013. On the H4 chart we see a pin-bar which is a clear buy signal. I recall that it can be played in 3 ways:
-Buying after breaking maximum, stop loss below minimum,
-Buying after breaking maximum, stop loss below 50% of candle abolition (better profit-to-risk ratio than in the first case – where the likelihood of loss was greater),
-Buy limit at 50% of candle abolition, SL below minimum. Better profit-to-risk ratio than in the first case and safer SL than in the second one. There is of course risk that we will not see a correction, the position will not be open and we will be out of the trade.
GBP/USD:
Yesterday I showed a way to play 2 pin bars which occurred on H1 chart. On today’s chart they are marked in yellow. They were formed on key support, stop loss was just 20 pips so it was worth to take a risk. Currently the price consolidates and another test of 1.6600 area is not excluded. In this case, continue to look for Price Action sell signals.
USD/JPY:
Currency pair currently is located at a key level. It was tested several times from the bottom on the daily chart and finally – in last week – it brought a break. Now it provides a support zone and each buy signal in its vicinity can be used to open long positions.
