Russia yesterday announced the annexation of Crimea which was reflected in the markets, but ensuring that they do not intend to go further calmed market moods. Investor do not like uncertainty, so if there will not be some dramatic events we can expect further increases in the stock markets and yen weakening. Let’s start with today’s potential Price Action setups review:
AUD/USD:
Currency pair is approaching key resistance but the local on (0.9085) has been already defeated. Increases are really likely and the test of 0.9170 surroundings – also there the future of the currency pair will be decided. The trend is upward for nearly two months so any short positions may be risky. The best scenario would be the resistance brake, its re-test from the top and opening longs after PA buy signals.
EUR/JPY:
Very dynamic situation on the Euro to Yen was seen yesterday – the proof here is H4 candle without a clear direction longer than 100 pips. The buy signal from the Friday’s pin bar is still valid. Yesterday there was also an opportunity to open long positions on the 50% of the candle’s abolition. As long as the price does not break 140.90 and the daily candle closes below, the effective direction is north.
EUR/USD:
Once again Eurodollar defended his support, but rebounds cannot reach higher than 1.3947 which is the Monday’s maximum. The trend is still upward and we can still look for buy signals near support. However, lateral movement is not optimistic and the key resistance is so close that any long position will have weak profit-to-risk ratio.
GBP/JPY:
Pair is over the support all the time. Yesterday’s tests ended with demands attack and that is why we cannot still talk about reversing the downward trend. Only the daily candle closing below 168.30 (or 167.70) will show clear dominance of bears.
GBP/USD:
Another situation on Cable. Price dropped below a key support and managed to close there. The picture is not unambiguous because on the H4 chart we have a clear demand candle, but more important is what you see on D1. You can already start to look for short positions – but firstly wait for the PA sell signal.
NZD/USD:
Very nice upward trend here. Yesterday I wrote about the really important closure above the resistance – it was challenged and clear pin bar candle was opened (marked in yellow on the chart) and after that the currency pair rallied. Currently, we have to wait for further developments, however the trend is clear. Going back to previous resistance will let opening long positions after buy signal.
XAU/USD:
Dynamic declines led gold to a key support. It is worth looking buy signals and follow the trend. They can occur in the first hours of the European session today.
