Market Commentary 29/06/16

EUR/USD – New High

The past couple of hours has seen the price of EUR/USD rise again past the previous high which was made yesterday.

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The break of the high suggests further up-movement although the fact that each new high has not managed to penetrate a large distance past the previous high suggests the upside momentum is quite weak. For now watch to see if the price is able to close above the line marked above, a close above here may mean the price is able to continue back up to the highs seen before the drop caused by the brexit.

 

USD/JPY – Stops Building Up Around Recent High

We are starting to see a collection of sell stops build up above the swing high which formed when the market began retracing last night.

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On the open orders graph you can see how there are a large percentage of buy stops found close to the 102.750 level.

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On the chart we can see this is very close to the swing high that formed when the market fell lower last night. I think it’s possible for an entry short to occur if these buy stops are hit, the appearance of a bearish pin bar or a bearish engulfing candle after the price strikes the stops could be a decent short trade.

If the stops are not hit and the price continues to fall, wait for a break of the swing low found at the bottom of this current move up before looking for entries short.

 

AUD/USD – Moving Higher After Failing To Make New Low

Although the market fell after hitting the supply zone which I marked on Mondays post, it did not fall far enough to make a new lower low and the price has now moved higher past the supply zone which caused the drop lower.

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The move down from the supply zone terminated below the 70% Fibonacci level which means it’s classed as a deep pullback. It would have been difficult to trade this deep pullback due to the lack of price action signals which appeared upon the price falling below the 70% Fibonacci level. Once the price started moving back up it broke past the high of the supply zone which is a signal that the momentum is back to the upside and we should now be looking to get entered into a long position.

 

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