The EURAUD cross pair has been churning sideways for some time now, and has been printing meaningless, confusing price action. The last few daily candles have printed some price action that suggests the market is ready to move lower from here.
We’re seeing lots of upper wicks on the daily candles as price reacts with this key containment line, and we’re getting a lot of bearish closes on these candles. The last two candles have been in the form of bearish pin bar, which have had a lower close compared to their open price.
The lows of today’s bearish rejection candle have already been breached, if price re-breaks the lows during the London session we could see a significant bearish breakout of this consolidation.
The trade played out as anticipated, we got a nice bearish response as the marked fell off resistance here.
Now we’ve breached the lower supportive containment line that had price backed up in consolidations. Now the market is moving downward again we can actively look for further shorting opportunities.
Also looking towards the GBPUSD this week for high quality short trades…
The AUDNZD market has just recently exploded higher off the back of New Zealand dollar weakness. This has caused the AUDNZD cross pair to accelerate away from the mean value and leave a large gap between price. These large gaps generally will generate a snap back mean reversion move.
The AUDNZD has run into a resistance level and printed two consecutive Inside Days. These double Inside Day setups usually produce good breakout moves. If the AUDNZD breaks below the Inside Day group, we would see a nice mean reversion move.
The GBPJPY market produced an early Asia session breakout trap which caused a bullish rally to fail and collapse in on itself. The market is now looking very bearish as the New York session comes online.
If the market continues to move lower and breaches the previous day’s low, then we can consider short positions as a bearish breakout trap and reverse trade triggers.
The S&P bulls have had a very good run the last few months, producing a very nice stable up trend. Recently the market has lost it’s upward momentum and appears to be ‘running out of steam’. The mean value has flattened out and is showing characteristics of a neutral market.
The market is clearly having trouble moving past that 1978.50 level. Last session a bearish rejection candle signal was produced when price tried to move through it, and ended up closing much lower than the open price for the day.
The market looks like it’s flattening out and could potentially tip over here. The weekly chart suggests a bearish correction really is needed as price sits too high off the mean value. If price breaks the lows of the bearish rejection candle, we could see this market turn bearish as it starts trading on the negative side of the mean.
This week we looked at the possibility of the S&P producing a market top. The daily timeframe clearly shows the market struggling to move past a resistance level for a couple of weeks. The candles started to clutter up like cars in a traffic jam suggesting the market didn’t have what it took to move price higher.
A few bearish price action cues suggested we were going to see more weakness in this market. The fact that the market had flattened out and started to drop bearish pin bars. The weekly chart shows the markets to be over extended from it’s mean value, suggesting a correction is due.
The signalling candle offered both the retracement entry and breakout entry option. Once the market started breaking past the lows, the selling intensified and produced a large bearish power candle. We’re still seeing some bearish follow-through today, but it’s probably a good idea to take the money off the table now before the NFP release.
Gold has been grinding down slowly the last few weeks, trading on the negative side of the mean value. We’ve had a few bearish signals along the way but the support level at the $1293 area has been restricting price from moving any lower.
Late last week, the support level was breached, and retested as new resistance this week. The hesitation to move back above as gold respected the swing level has created an Inside Day with some nice bearish tone in the body.
If Gold manages to break down past the Inside Day low, we could see a nice downward move develop from this price action setup.
We’ve been talking about the price action on the big US stock index – the S&P. The S&P has been in a serious uptrend, it’s something traders should be watching with a close eye.
Last week we did see the market fall down from fresh highs back into long term support. The weekly chart beautifully shows the uptrend in place here and the critical support level that we’re focused on. This area on the weekly chart is what we call a bullish ‘hot spot’ due to the fact the area is supported by the mean value and a critical swing level.
The weekly candle did show bullish rejection of the hot spot, which give us price action traders a good reason to get long.
Zooming into the daily chart we can see a very strong bullish rejection candle that formed last Friday. This candle has an aggressive close up off it’s open price which gives this candle some strong bullish character.
When the weekly and daily chart line up together it produces a very high probability price action setup. We’re waiting to catch any retracement that occurs on the daily chart to tighten up our stop loss and increase the reward potential of the trade.
There was an Inside Day on EURUSD yesterday & the chance for a short.
It was back at mean value, in line with the overall trend but I never took it - I think I was put off by all the talk of a technical rally for the Euro. Did you consider it? I’m thinking it was a bit of a missed opportunity now.
Hammer show up on all of GBP pair, becareful on trading GBP pair though since tomorrow morning UK GDP came out, there’s probably a lot volatility tomorrow morning.
Base on PA itself, GBP should start going up
Sorry, I have been very busy - I will try to come in more often and post some charts.
The thread is fine, it’s that many traders look but don’t post, i am one of them.
I need others to help keep the discussion going - I don’t want to feel like I am talking to myself
In contrast to all the exciting movement we’ve seen last month, the more recent price action has been more challenging to find good trades in. Even on on the yen - if you weren’t already in on the move, it’s hard to enter those ‘straight line’ moves because it always feels like you’re ‘buying at the top’. That’s why I am a big fan of waiting for corrections to buy/sell into.
The AUDUSD has broken critical support - waiting for any short signals to develop here, even on the 4 hour chart. I want to see that level hold as resistance but I am waiting for a bearish price action signal to confirm this.
Also the GBPUSD dropped a bullish rejection candle at the bottom of the range support here , which could see prices push higher and test that range top again. I think it’s a little risky this trade, because the overall pressure still seems to be down. A safer approach is to wait to sell price action signals off the range top, or wait for support to break and sell reversal patterns off the old support as it holds as new resistance…
