Markets strong emotions from the week beginning disappeared and were replaced by pure technical analysis. Although not everywhere – as I will show in the case of NZD/USD. Let’s start with Price Action Setups review for today:
AUD/NZD:
Currency pair attacked resistance and once again we saw a clear rejection. It is worth to look for PA sell signals here. When you look on H4 chart you will see that inside bar formed – overtaking it may be a really good signal. In addition, the last to daily candles are pin bars, which also clearly indicate the sale. However, traders who have opened short positions before might have them closed at nigh – because today’s candle broke previous highs. It looks a little like the GBP/USD at the beginning of February. Pin bars were also forming, the price broke the maximum closing the position and then, there was a huge increase. Perhaps on AUD/NZD we will see a similar action.
EUR/JPY:
The currency pair is on the resistance which was re-challenged 6 times already (D1)! Will we finally see a break or a drop of 200 pips or more? It is difficult to predict, but is it worth to react to the situation on the chart. If there is a sell signal you may open shorts. But if the price clearly beats the resistance, then you should look for buy signals at the re-test level of 141.00 from the top.
NZD/USD:
Yesterday there was a very clear sell signal on the H4 chart. Large pin bar after resistance rejection and false break. However, it turned out to be a bear’s trap. The minimum was overtaken, so shorts were open properly. But during the night, the price struck over yesterday’s maximum, thus closing the positions on SL. Such situations will happen, markets are not perfect. Therefore, on this currency pair everything went very clear for playing short positions.
USD/JPY:
The same situation as in the EUR/JPY. Price is testing resistance again. Sell signals at this level should be used to open sell position. But all the time, there is a chance to break the 103.00 level surroundings. Then, the situation will change and we will long for long positions.
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