Two bearish Outside candles have formed last session at key areas of interest.
The EURAUD has recently formed a double top and now the market has retested the neckline and dropped a bearish outside candle signal.
EURGBP has retraced to the trend mean value and also dropped a bearish outside day signal after rejected the gapping up action at this week’s market open.
Contemplating lower prices here for both of these markets off the beck of these strong outside days.
Watching EURNZD daily chart for a sell signal tomorrow.
The market has recently just broken out of range bound conditions, this week price has rallied up to test the range breakout area. This area lines up nicely with the dynamic resistance qualities of the mean value, creating a nice bearish hot spot for a signal to form.
Will be re assessing this one at the daily close.
Expanding on the previous post, a bearish 2 candle rejection has formed as price rejected the key swing level here. The old support level holding as new resistance creates that classic ‘breakout & retest’ trade.
Kicking off this trading week some eye grabbing price action movement on the spot gold market (xauusd)
When the market opened this morning, gold surged upwards. But that upward rally was short lived as the market rejected the bullish response. The 4 hour candle closed as a bearish rejection candle, and it is rejecting the 40/110EMA. We use the 40/110 EMAs on the h4 chart because they basically superimpose the daily 10/20 ema mean value area onto the 4 hour chart for reference.
I haven’t pulled the trigger on this one yet, I would really like to grab a retracement entry here. Gold activity doesn’t really get going until the New York session, so if this session produces bearish activity that flows off this signal, it could set the tone for the rest of the week.
The gold 4 hour bearish setup we discussed as now matured into serious bearish movement on the daily chart.
The 4 hour signal was large and dominating, a setup that really stood out. It was a great opportunity to nail a nice entry price and capture this aggressive move.
Like we always say, good h4 signals usually evolve into a decent daily signal, so if you missed the h4 there was a bearish rejection candle that printed on the same day.
We are anticipating some more aggressive bearish flow on movement this session.
Awesome Vas,
There is also an Inside Day on the EURUSD which we are watching for bullish breakouts of the high during this London/NY session…
Why the failure with this setup?
Thanks for your comments
EURUSD & GBPUSD bullish trade setups didn’t work out, which is annoying most probably due to a high impact news release going bad.
Why the failure with this setup?
My best answer: There is no sure thing in the markets, no matter how good the trade looks there is always the chance of failure.
That’s why is always a good idea to plan the trade out using positive risk/reward strategies so your wins always out do your losses.
As we discovered last session, the mean value didn’t hold and the market was driven into lower price and maintained them right up until the New York close.
The bullish setup didn’t work out obviously, but now our bias is bearish as all the dynamics have switched over to bearish conditions when the market closed below the mean value and a key support level.
We will be watching this market looking to buy on signs of strength, focusing on bearish price action signals that terminate countertrend rallies.
To start off this week’s trading most of the pairs experienced light price movements. The more active moves were the Australian & New Zealand dollar.
On the Australian dollar, the market opened up much lower than Friday’s close ‘gapping down’. As soon as the market started ticking this week, the bulls started to reject the bearish move into the mean value and the candle closed much higher.
If we didn’t have the interruption of the weekend, this candle would have closed as the typical ‘pin bar’ formation. The mean value has held as dynamic support on the AUDUSD, all the recent sell offs into the trend mean have been rejected by the bulls.
The buoyancy of the market above the mean is a good sign of trend stability and traders could use the gap rejection as a signal to get long. Just watch out for the overhead swing high, look for any strong bearish signals which may hinder bullish positions.
Looking at the progress of the the AUDUSD trade progress and we can see that the trend a developed further driving prices higher as the bullish rejection trade matures into profit.
There are no signs of bearish exhaustion yet but price is trading at a distance from the mean so will probably consider closing this one at the end of trading this week, maybe around the end of the upcoming London session.
Another interesting chart is the gold chart where a power candle has smashed through the trendline which was containing price.
Considering going long on the break of the high, however gold is most active after the new york session opens so I probably won’t take no action until we’re into London trading session hours.
AUDUSD hit profit nice strategy
AUD and NZD have been the money makers the last few weeks, trending very nicely.
We had a nice trade setup on the AUDCAD also mature into nice profits.
Unfortunately, after the double inside day signals formed, a bearish rejection candle formed which injected a lot of uncertainty into the setup. So most of us bailed on it, but the signal didn’t produce hardly any bearish response from the market and the trend continued to push higher. So we got on the train, but got off on the wrong station, bummer.
Did you take that long on Gold ? I have a pending order set but it didn’t get triggered yet
No didn’t take the trade because there was a failed breakout before the london session opened. That’s why I don’t place breakout orders during the asia session.
After that failed break, the market never re-broke the highs in the later london/ny session so no trade triggered. I wouldn’t be surprised to see a sell off next week off the back of the small bearish rejection candle that formed on friday.
gbpnzd has formed a bearish rejection candle at swing level,looking for short entry at 50 retrace level.
Glad we didn’t get triggered.
Any opinion on the eur cad bullish fakey setup on D1 flowed by a powerful bullish candle?
yes a reversal candle is there,but bullish intact looks very strong,so let see how monday candle closes.
