EUR/USD – Possible Pin Bar On Daily Chart
EUR/USD has continued to fall but we are beginning to see sings of a potential up-move developing.
Take a look at how the lows marked with the arrows are getting closer together, this coupled with the fact the market made a new high late this morning shows us either bank traders are beginning to take profits off short positions or their placing buy trades with the expectation of the market moving higher.
Looking at the daily chart we can see how today’s candle may potentially form into a bullish pin bar, I wouldn’t take this as a trade just yet, it’s better to wait for the end of the day so we can see if the bar closes bullish or not, if the market makes a move higher from its current price it may be enough to turn the candle bullish for now all we need to do is wait.
USD/JPY – More Selling, New Supply Created
The market ended up failing to break the low which formed yesterday and instead turned at the demand zone formed near the low.
When the market hit the demand it proceeded to break the high of the down-move, the market was not able to fully close beyond the high which tells me someone is interested in selling to stop the market moving higher, since the new high formed the market has made another move lower which has created a supply zone.
If the market fails to break the supply zone its likely this could be the end of the pullback, we need to watch the price action when the market enters the zone if a bearish engulfing candle appears on a lower time-frame it could be a good entry short into the reversal, keep an eye on the low which formed a few hours ago , a break past here would signal the momentum is changing and would give us further confirmation of a reversal taking place.
AUD/USD – Fallen Into Daily Demand Potnetial Bullish Pin Bar Forming
The market has fallen into the daily demand zone we identified a few days ago, a small move out of the zone is now taking place, if the market continues its rise out of the zone we may see today’s candle turn into a bullish pin bar.
For today’s candle to turn into a bullish pin I would think the high marked above needs to be broken, as it stands this move out of the zone does not seem very strong, I would have preferred to see multiple large range candlesticks on the exit of the zone as this would have been a stronger sings of a reversal.
At the moment we need to wait until the end of the day to see if today’s candle closes into a decent pin or not, when bullish pin bars close bearish as opposed to bullish usually its a sign of the market retracing back into the wick the next day, if the candle does end up closing bullish make sure you watch the 1 hour chart to see of the upwards momentum continues and the market keeps making new higher highs.