Welcome in weekend review of PA setups. Few possible signals can be seen on the chart, which can be quite interesting at the next week beginning:
EUR/CAD:
Currency pair is now in long-term uptrend, but the last three weeks brought decreases. Currently we are in the middle of ongoing correction which may stop at the resistance. If a clear PA sell signal occurs there, we will be able to open short positions. In the case of resistance breakout and closing above the short-term sentiment will change into upward one – it will be a good occasion to look for long positions during the re-test of this level from the top.
EUR/USD:
Eurodollar closed its second daily candle above the resistance. H1 gave buy signal, while there is still a possibility to open longs in case of another tests of 1.38770. Currency pair should attack march highs soon.
GBP/JPY:
Cross is currently in really broad consolidation and falls in the direction of its lower limit where you should look for buy signals.
GBP/USD:
After really strong growth uptick, Cable rebounded from the resistance really accurately and slipped toward the support. Sentiment is upward and really strong, so you should look for buy signals.
NZD/JPY:
Another interesting cross for the next week. Really strong buy signal. Currency pair is during a dynamic growths and after support test a pin-bar candle formed. This situation can be played in three different ways:
-Buying after breaking the maximum, stop loss below the minimum,
– Buying after breaking the maximum, stop loss below the 50% of candle’s abolition (better risk/reward ratio than in the first case – where the likelihood of losses is greater),
– Buy limit on 50% of candle’s abolition, stop loss below the minimum. Better risk/reward ratio than in the first case and safer SL than in the second one. There is still a risk of lack of correction – in that scenario we will be out of position and just observing the developing trend.
NZD/USD:
A slightly different situation on Kiwi – next pair with New Zealand dollar in today’s review. Despite reaching successive peaks, pair decreased rapidly and failed to fight the resistance (previously the support). What is more, we can see a sell signal on the H1, which still may be played if the price goes up a little. Although D1 candle has a long lower wick, it is worth to take a risk – the position will have a stop loss of around 15 pips with target above 150 pips. Profit-to-risk ratio is over 10:1!
USD/JPY:
Support on H4 chart was tested five times already and price could not break it, giving a buy signal. However, small response to the level defense may be worrying and we should be careful with position size, even though the signals are quite clear.
