Although yesterday session was really stuffed with important macro data and there was huge anxiety caused by the situation in the eastern Ukraine, currency markets remained quiet. Will the situation change today? We are in the end of the week and end of the month – bulls will fight with bears to dominate not only weekly, but also monthly candles close. It may bring some interesting action.
Let’s start our Friday’s Price Action Setups Preview. For today we have prepared four currency pairs – AUD/NZD, EUR/AUD, GBP/AUD and USD/CHF.
AUD/NZD
We show this pair just for remembering – price approaches really important resistance, where selling signal appeared. In that case we can think about SELL position. As you can see AUD/NZD is currently in uptrend with huge downward corrections. If however, this very level breaks, then we will have to look for purchase signals (after re-test of the previous resistance from the top). But of course we will write about it, if such situation occurs.
EUR/AUD
Cross is now in the center of key support zone (1.4100-1.4050). It is worth to look for BUY signals, because they will have huge RR. On the H4 chart pin bar candle can be seen. Such setup can be traded in three different ways:
- Purchase after breaking above maximum, SL below minimum,
- Purchas after breaking above maximum, SL below 50% retracement of a candle (better RR ratio than in the first case),
- Buy limit at 50% retracement of a candle, SL below minimum. Better RR ratio than in the first case, and safer SL than in the second one. But there is still a risk that market will not correct the price and we will be left without a position in developing trend. Personally, I prefer this method – so I activate buy limit order at 50% retracement of this candle.
GBP/AUD
Also British pound sterling to Australian dollar approached important support. Observe and wait for BUY opportunities.
USD/CHF
First and also last dollar-pair in today’s Price Action Setups Preview. USD/CHF is really interesting nowadays. After breaking above truly important resistance, currency pair consolidated for more than 3 sessions and then fell below and tested the level from the top. It worked as a support and confirmed the current trend strength. Yesterday candle may be considered as signal one – we should play it similar to the pin bar case on EUR/AUD (mentioned above).
