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