EUR/USD – Potential Bullish Pin Bar On Daily Chart
A new lower low has resulted in the market making a bullish move higher, its possible for this move to create a bullish pin bar on the daily chart if it manages to sustain itself over the coming hours.
Ideally I would want to see a nice close above the high marked in the image, I think if the price manages to close beyond this point and stay there for the remainder of the day we may see more up-movement over the coming week, at the moment there isn’t much we can do, a deep pullback is possible but I would want to see a close above the highs before looking for a trade entry.
If the market fails to close beyond the line I’ve marked above then we may see another move down tomorrow after the USD news comes out.
USD/JPY – More Profit Taking
The price has continued to rise on USD/JPY and we are now seeing more hints of profit taking entering the market.
This current swing higher has been in place for a quite a long time now and I don’t think it’ll be long until we see a big retracement or entire reversal take place. For the moment I think there may be an opportunity to get long from the demand zone seen in the image, if the price does return to this zone it will not be a trade you can hold for a long time as its likely for the market to change direction quite soon so keep profit expectations low if you do decide to take the trade.
AUD/USD – Potential Consolidation Forming On The 1 Hour Chart
Today we have seen the price of AUD/USD rise from the lows it made yesterday, it’s now looking like we may be entering into a consolidation due to the way the swings are forming.
The breakout zone failed to provide any meaningful move lower, the bullish pin bar which formed two candles after the price hit the zone was a clear hint the market was about to break the zone. To determine if we are indeed seeing a consolidation form we need to monitor the current low, if this low gets broken and the price manages to close below it, its likely for the market to keep dropping.
For now just watch the current high and the current low, there nothing we can do in terms of taking trades when the price is swinging up and down like it is now, its best to wait until we have clear structure before looking to place any trades.