Markets calmed down yesterday, but the lack of respecting technical levels on many currency pairs can prove that emotions take up all the time. There is no clear signals to open a position and really only GBP/CHF, about which we wrote yesterday, was interesting and gave opportunities to trade. Let’s start today’s PA setups review:
AUD/JPY:
Australian Dollar to Yen breakout from the cloud yesterday above the key resistance and one again it seems that the bulls took control. Friday’s decline and Monday’s gap announced further declines, but the lack of response on 91.00 is changing the growth attitude. If there is a correction and resistance (now support) re-challenge, it will be possible to open longs after PA buy signal appearance.
EUR/CAD:
After a sell signal from Friday, currency pair consolidates just below the key resistance. Traders with short positions opened should wait.
NZD/USD:
Another attack on a very important 0.8410 level. On the lower intervals we can see clear rejection of that level, which indicates a high supply. It is worth to look for clear PA sell signals.
USD/CHF:
Another currency pair, which after overtaking an important level (in this case, very important) and approaching the lowest value since 2011, is now returning above the resistance. The trend is clearly downward so we will look for sell signals. They can occur in the area of local resistance, which is shows in the chart (coincides with the 21 EMA).
