Yesterday the most abrupt was the USD weakening. Rumor has it that it was caused by stop losses activation. We will see today if dollar weakness continues. Let’s start today’s Price Action Setups review:
AUD/NZD:
Cross broke the resistance and then tested it from the top, confirming growth potential. Currently, the U.S. dollar against the New Zealand one sees next resistance at 1.0730. If clear sell signal occurs there we will be able to open short positions consistent with the long, downward trend. In the event of a breakout, re-test from the top will be an occasion to open long positions according to the recent momentum.
AUD/USD:
Currency pair approached the key support. This is a very important level and the prices behavior here will determine the Aussie momentum in the nearest future.
EUR/JPY:
On Friday, Euro against Yen challenged the support, forming a pin-bar which gives a buy signal. It could be played in 3 different ways:
-Buy stop above candle’s maximum and SL below the minimum,
– Buy Stop above candle’s maximum and SL below the 50% of the candle’s abolition,
– Buy Limit on the 50% of the candle’s abolition and SL below.
The third way is the safest and as you can see in the chart position would open and I would be more than 60 pips on the plus with about 40-pips SL.
EUR/USD:
Yesterday a real rally on Eurodollar, which lead the rate above the key resistance (which is now support). If the 1.3830 zone will be defended today it would confirm the dollar weakness. Buy signals on that support can be used to open long positions in accordance with the recent momentum and long-term, upward trend.
GBP/AUD:
Para slipped to the key support. Breaking this level will result in large falls. For now, if the support defend itself it will be possible to look for buy signals. However, we have to remember that the momentum is downward and it is worth to wait for slippage and level re-test from the bottom. It will be a good opportunity to join the trend and follow it.
