As we have forecasted, yesterday was really interesting for the market. There were few strong movements and thanks to that we see investing opportunities. Let’s start today Price Action setups preview.
Upward correction begun. It is worth to observe the cross and look for PA sell signals – of course if price reaches to the previous support (which now should act as a resistance).
Single currency to Japanese yen approached key resistance level and we can see the first price reaction. If strong short signal shows, it will be worth to consider going south – because trend is downward and the level itself got much strength.
The most popular currency pair almost tested really important support level at 1.3100 (it was hovering 10 pips over it). If bigger correction begins, it should head off from this area. However, we should take into account, that there is downtrend and playing long will be trend-opposite trade. Thus, it will is less likely to be successful than short position. It is better to wait for correction and resistance test (the one seen on the chart).
Cross fell near really important support level. In the last week it rebounded sharply, but currently price once again found itself in this key zone. Pair is in the broad consolidation, so playing long may be a good idea. Of course, first we have to wait for Price Action purchase signal to show up.
Cable – as we expected – fell to the important support level, where we should see a rebound. Finally! However, if the price breaks below, then it will be worth to look for short positioning signals. The best opportunity would be a re-test of previous support. Currently though, clear PA signal may be a key force to going north. You have to be careful, however – recent momentum is downward, so sell positions might be risky.